EUR/GBP's retreat from 0.8114 extended further last week and dipped to as low as 0.7974 so far. While deeper fall might be seen initially this week, we'd expect downside to be contained by 0.7962 resistance turned support and bring rally resumption. Above 0.8057 minor resistance will flip bias back to the upside. Further break of 0.8114 will extend the rebound from 0.7755 toward 0.8152 key resistance next. Nonetheless, sustained break of 0.7962 will argue that rebound from 0.7755 is completed and will turn outlook bearish for another low.
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. At this point, we're favoring the case that fall from 0.9083, as well as the correction fro 0.9799, has completed at 0.7755 already. 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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