EUR/GBP jumped to as high as 0.8006 last week and the strong break of 0.7962 indicates resumption of rebound form 0.7755. More importantly, the strong break of the medium term channel resistance indicates that whole decline from 0.9083 has completed at 0.7755 on bullish convergence condition in daily MACD. Initial bias is on the upside this week for 100% projection of 0.7755 to 0.7962 from 0.7886 at 0.8093 first. Break will target 0.8152 key resistance next. On the downside, break of 0.7886 is needed to dampen this case. Otherwise, outlook will stay cautiously bullish even in case of deep retreat.

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. The break of the falling channel from 0.9083 serves as the first signal of completion of fallf from 0.9083, as well as the consolidation from 0.9799. Break of 0.8152 will further affirm this case and would target a test on 0.9083 key resistance next.

In the long term picture, there is initial sign that EUR/GBP is finally drawing strong support above 0.7693 as expected. And that means, the long term up trend from 0.5680 could extend to a new high above 0.9799. We'd pay close attention to whether the current rebound could gather sustainable momentum. However, note again that sustained break of 0.7693 will bring deeper fall back to 0.6535/7258 support zone.

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