EUR/GBP reversed after edging higher to 0.9410 and retreated sharply last week. A short term top is in place with bearish divergence conditions in 4 hours MACD. Initial bias will remain on the downside this week and further fall could be seen. But after all, downside is expected to be contained by 0.8983 cluster support (61.8% retracement of 0.8722 to 0.9410 at 0.8985) and bring strong rebound. Above 0.9202 minor resistance will flip intraday bias back to the upside for retesting 0.9410 first. Nevertheless, note that decisive break of 0.9410 is needed to confirm rally resumption. Otherwise, more consolidations would be seen first.
In the bigger picture, medium term correction from 0.9799 has completed with three waves down to 0.8399 already and rise from there is tentatively treated as resumption of long term up trend. Break of 0.9799 bring rally to next medium term target at 61.8% projection of 0.6535 to 0.9799 from 0.8399 at 1.0416. We'll hold on to this bullish view as long as 0.8704 support holds.
In the long term picture, long term up trend in EUR/GBP might be resuming as correction from 0.9799 has completed at 0.8399. Decisive break of 0.9799 high will confirm this bullish view and target 261.8% projection of 0.5680 to 0.7258 from 0.6535 at 1.0666.