EUR/GBP's late fall last week indicates that recovery from 0.7755 was completed at 0.8114 already. Note that EUR/GBP is bounded inside the medium term falling channel for the moment. Also, the structure of the rebound from 0.7755 to 0.8114 looks like a correction. That means, the decline from 0.9083 might not be over yet. Further decline will remain in favor as long as 0.8007 minor resistance holds, for 0.7887 support. Break will pave the way for a new low below 0.7755. Nonetheless, break of 0.8007 will turn focus back to 0.8114 resistance.
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. Current development argues that such consolidation isn't over yet and a new low below 0.7755 might be seen. But we'd continue to focus on reversal signal during next fall. However, sustained break of 0.7693 will have larger bearish implications.
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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