The EUR/GBP has opened with a significant gap up, has touched new highs, but unfortunately has dropped a little after the impressive jump. Has decreased sharply in the European trading session, but the perspective remains bullish because has failed to close the morning gap. Now is pressuring an important static resistance, has climbed above this upside obstacle, but remains to see if we’ll have a valid breakout. Personally, I’m expecting to see the price much higher in the coming period because the Cable continues to be under selling pressure.
Technically the price should increase further because is located much above some important support levels.
The Euro could increase further in the coming days, even if the Euro-zone Trade Balance has increased less versus the economists estimate, the surplus has surged from 19.9B to 22.7B, but has failed to reach the 23.2B estimate, on the other hand the UK’s Rightmove HPI rose by 0.4%, the indicator has increased again after two decreasing months.
Tomorrow we could have some volatility on this pair because the United Kingdom is to release some high impact data, the numbers could bring life on the EUR/GBP.
The price has managed to jump much above the upper median line (UML) of the major ascending pitchfork and above the 100% Fibonacci level, but has retreated a little and now is located below the static resistance.
Personally, I’m expecting to see the price much higher if will have enough energy to stay above the upper median line (UML) of the ascending pitchfork, the next upside target will be at the first warning line (WL1) of the ascending pitchfork, but I’m waiting for a minor consolidation above the 100% Fibonacci level before will try to approach and reach the previous highs.
I’ve drawn a minor ascending pitchfork to understand better the current upside movement, the rate is expected to increase further after the retest of the lower median line (lml) of the minor ascending pitchfork, technically is expected to approach the median line (ml) in the coming period, we’ll have a great buying opportunity if the price will test the major confluence area formed between the 100% level with the UML and the lower median line (lml) of the minor ascending pitchfork.