EUR/GBP dipped to 0.7983 last week first but recovered strongly since then. The development indicates that consolidation pattern from 0.7949 is not finished yet. Initial bias remains neutral this week for more choppy sideway trading. But note that any rebound attempt should be limited by 38.2 retractment retracement of 0.8505 to 0.7949 at 0.8161. An eventual downside breakout is still anticipated and below 0.7949 will target next important fibonacci level at 0.7782.

In the bigger picture, price actions from 0.9799 are treated as a long-term consolidation pattern with fall from 0.9083 as the third leg. Strong support is expected inside 0.7693/8186 support zone to conclude the consolidation. Thus, we'll be looking at a reversal signal now. Though, as long as 0.8221 support turned resistance holds, another decline is still in favor, possibly to 61.8 percent retracement of 0.6535 to 0.9799 at 0.7782 before fall from 0.9083 completes. On the other hand,  a break of 0.8221 will indicate reversal, and EURGBP could then have started another leg inside the consolidation pattern or resumed the larger up trend.

In the long-term picture, long-term up trend from 2000 low of 0.5680 shouldn't be over yet, and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.

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