Despite a dip to 0.7811, there was no follow through selling in EUR/GBP and the cross quickly recovered. Initial bias is neutral this week for some more sideway trading. But note again that we'll stay cautiously bearish as long as 0.7962 resistance holds. Decline from 0.9083 is still in favor to resume. Below 0.7811 will target 0.7755 low first and break will confirm fall resumption for 0.7692 key support level next. However, break of 0.7962 resistance will now be an early sign of reversal and should turn focus back to 0.8152 resistance instead.
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'll continue to focus on reversal signal during this stage of the decline. Break of 0.8152 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 61.8% 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.