EUR/GBP's pull back from 0.9410 extended further to as low as 0.8996 last week but after all it was held above mentioned 0.8983 cluster support (61.8% retracement of 0.8722 to 0.9410 at 0.8985) as expected. Friday's strong rebound and break of 0.9190 minor resistance indicates that such pull back is completed. Initial bias is on the upside this week for a retest of 0.9410 resistance first. Break will confirm that whole rally from 0.8399 has resumed and should target 0.9799 high next. On the downside, however, a break of 0.8996 will now indicate that rise from 0.8454 has completed and bring deeper fall towards 0.8704/8837 support zone.
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.