EUR/GBP's recovery from 0.7811 extended further last week but upside momentum has been diminishing apparently. Also, note again that 0.7962 resistance remains intact and thus, our bearish view remains unchanged. That is whole decline from 0.9083 is expect to resume after consolidation pattern from 0.7755 finishes. Break of 0.7811 should send the cross through 0.7755 low towards 0.7692 key support level. However, sustained 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.

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