EUR/GBP's rebound fro 0.7922 extended and accelerated last week. The breach of medium term falling channel serves as another sign of reversal. Initial bias is on the upside this week for 0.8114 resistance first. Break should strongly suggest that whole decline from 0.9083 is completed and will target 38.2% retracement of 0.9083 to 0.7755 at 0.8262. On the downside, below 0.8029 minor support will turn bias neutral again and mix up the near term outlook.
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 breach of the channel resistance and bullish convergence condition in daily MACD are signs of reversal. Break of 0.8152 resistance should strongly suggest that whole correction fro 0.9799 are completed and would pave the way to 0.9083/9799 resistance zone first.
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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