In the four-part show, archival footage and personal videos and photos are intertwined with present-day interviews and scenes of the group embarking on their 2022 tour
The artwork near a graffiti park in Shoreditch, in east London, features three images of the "Faith" singer clutching a jacket next to the words "Never gonna dance again", a lyric from Michael's single "Careless Whisper".
People stopped on Thursday to take photographs of the painting, which took four hours to complete.
"So many people stopped as I was painting it. It got a great reaction," Pegasus, who said he had been inspired by Michael, told the Evening Standard newspaper.