EUR/GBP's down trend resumed last week by taking out 0.7949 and reached as low as 0.7924 so far. Initial bias remains on the downside this week for 61.8% projection of 0.8505 to 0.7949 from 0.8156 at 0.7812 next. However, we'll be cautious on reversal signal as the cross approaches next long term fibonacci level at 0.7782. On the upside, above 0.7964 minor resistance will turn bias neutral and bring consolidation before staging another fall.
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 possibly near term 61.8% retracement of 0.6535 to 0.9799 at 0.7782. Hence, we focus on reversal signal during this stage of the decline. Break of 0.8156 resistance will be the first sign of bottoming.
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.