The EUR/GBP has been in a distribution type range since around the 16th of may. This is the outcome following a continuation lower in its long term trend.
The last continuation in long term trend, the fall in price from around 8500 to the lower of this year 7950 was approx 550 pips in length, a nice distance on the EUR/GBP considering the pip value.
The previous trend continuation was from around 8800 down to 8250 around how many pips? oh what a surprise about 550 pips.
The EUR/GBP has really been going down since the economic crisis began in late 2008 and in this time is been reasonably predictable in the way its moved, discounting the odd bit of random volatility.
The current price action is around 8050 and currently appearing to retrace/correct its last major long term move [the drop from 8500 to 7950] to find dynamic support somewhere between 8250 and 8000, quite possibly somewhere in the middle.
It is also worth considering that the price is currently sitting on months of support [previous price action] from early to mid 08 [pre crash] and that could cause a considerable correction higher if is strongly respected.
Once this has happened and the last major move has been corrected it is reasonably likely that unless there is some magical euro zone cure that the EUR/GBP will then continue its long term trend [since 08] and push lower possibly into the 77’s. [even lower if the 08 support mentioned above is broken easily 7500??]