The EUR/GBP has decreased and has reached new lows, could drop much deeper because looks very heavy. Has dropped as the Cable has become strongly bullish again on the short term, the UK’s currency has appreciated significantly also versus the greenback, remains to see how long will be this bullish movement because the Pound remains under pressure.
The Euro has decreased versus its rivals also because the Euro-zone data have failed to impress today, the price action is developing an important chart pattern on the Daily chart, I hope that we’ll have a clear direction after a valid breakout.
Technically the price could decrease again after the failure to make new highs, has failed also to stabilize above a broken resistance level, right now is seeking for strong support. Maybe well be better to stay away from this pair in the coming period because we don’t have an important trading opportunity. Most likely the rate will continue to move sideways in the coming period, so we should wait for a fresh trading signal.
The price continues to move somehow sideways on the short term, should drop again after the failure to stabilize above the 50% Fibonacci line (ascending dotted line), is under pressure after the failure to reach the 100.0% Fibonacci level.
Price could decrease also because has failed to approach and reach the 0.8851 previous high and the median line (ml) of the minor ascending pitchfork. Has also failed to approach and reach the upper median line (UML) of the major ascending pitchfork, signalling that the bulls are exhausted on the short term.
I want to remind you that the perspective remains bullish as long as the rate is trading right above the median line (ML) of the ascending pitchfork, could be attracted by the ML after the failure to reach the UML.
We have some important confluence areas that could attract the rate, so a further decrease is favored on the short term. You can see that the rate is forming a triangle chart patter, we’ll have a clear direction once the rate will escape from this pattern.