EUR/GBP formed a short term bottom at 0.7755 last week and recovered. More consolidations could be seen in near term. But in case of stronger recovery, upside is expected to be limited below 0.7949 support turned resistance and bring another fall. Recent decline remains in favor to continue and below 0.7755 will target 0.7693 key support level next.
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. Hence, we focus on reversal signal during this stage of the decline. Break of 0.8156 resistance will indicate medium term reversal. However, sustained break of 0.7693 will invalidate this view and could then bring deeper fall to 100% projection of 0.9799 to 0.8067 from 0.9083 at 0.7351 or even further to 0.6535/7258 support zone.
In the long term picture, the long term up trend now looks very vulnerable even though EUR/GBP is still holding on to 0.7693 key support and 50% retracement of 0.5680 to 0.9799 at 0.7740. Sustained break of 0.7693 will bring deeper fall back to 0.6535/7258 support zone.