EUR/GBP dropped further to 0.8672 last week but drew support from 0.8671 resistance turned support and near term rising channel and recovered. However, upside is so far upside below 0.8817 minor resistance and thus, there is no indication of near term bottoming yet. A break of 0.8672 will indicate resumption of fall from 0.9041. More important this will argue that whole rise from 0.8284, is completed already and will bring deeper decline to medium term rising trend line (now at 0.8422). On the upside, though, extending rebound from current level and break of 0.8817 will suggest that pull back from 0.9041 has completed and will bring stronger rise to retest this high.
In the bigger picture, current development is now mildly favoring the case that rebound from 0.8067 has completed with three waves up to 0.9041. The corrective structure in turn indicate that whole fall from 0.9799 (2008 high) is still in progress for another low below 0.8067 before completed. Sustained break of 0.8671 support will affirm this case and target a test on 0.8067/8284 support zone next. Nevertheless, break of 0.9041 again will re-affirm the case that medium term correction from 0.9799 has completed with three waves downside to 0.8607 already. In such case, the long term up trend that started back in 2000 might be resuming for another high above 0.9799.
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.