[m.youssif]

EUR/GBP's rally extended to as high as 0.8922 last week before making a temporary top there and retreated. While there is no acceleration in upside momentum, the cross managed to stay well inside near term rising channel. Thus, recent rally is still expected to continue. Above 0.8892 will target 0.8940 resistance first and then 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 next. After all, break of 0.8713 support is needed to signal short term topping. Otherwise, we'll stay bullish.

In the bigger picture, the sustained break of medium term trend line resistance revived the case that correction from 0.9799 has finished with three waves downside to 0.8607 already. The long term up trend that started back in 2000 might be resuming. Further break of 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 will indicate that rise fro 0.8067 is likely developing into an impulsive wave and will further affirm this bullish case. EUR/GBP should then target a new high above 0.9799 then. On the downside, break of 0.8284 support is now needed to indicate that rebound from 0.8067 is completed. Otherwise, outlook will remain bullish even in case of deep pull back.

In the long term picture, long term up trend from 2000 low of 0.5680 shouldn't be over yet and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.

[m.youssif]

EUR/GBP's rally extended to as high as 0.8922 last week before making a temporary top there and retreated. While there is no acceleration in upside momentum, the cross managed to stay well inside near term rising channel. Thus, recent rally is still expected to continue. Above 0.8892 will target 0.8940 resistance first and then 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 next. After all, break of 0.8713 support is needed to signal short term topping. Otherwise, we'll stay bullish.

In the bigger picture, the sustained break of medium term trend line resistance revived the case that correction from 0.9799 has finished with three waves downside to 0.8607 already. The long term up trend that started back in 2000 might be resuming. Further break of 100% projection of 0.8067 to 0.8940 from 0.8284 at 0.9157 will indicate that rise fro 0.8067 is likely developing into an impulsive wave and will further affirm this bullish case. EUR/GBP should then target a new high above 0.9799 then. On the downside, break of 0.8284 support is now needed to indicate that rebound from 0.8067 is completed. Otherwise, outlook will remain bullish even in case of deep pull back.

In the long term picture, long term up trend from 2000 low of 0.5680 shouldn't be over yet and the choppy fall from 2008 high of 0.9799 should be a correction only. We'd expect such correction to be contained by 0.7963/0.8186 support zone and bring up trend resumption. Rise from 0.5680 is still expected to extend beyond 0.9799 high eventually.