The EUR/GBP has increased significantly since Thursday and seems motivated to jump in the buyer’s territory again. It remains to see what will happen in the upcoming hours because the rate could close the trading session above a dynamic resistance.

The rate continues to move in range on the Daily chart, so only a valid breakout from it will bring us a great trading opportunity. Right now will be better to stay away from this pair because we don’t have any trading opportunity, but I really hope that we’ll have one very soon because it cannot move like this too long.

Personally, I was expecting to see a larger drop after the breakdown from an ascending pitchfork’s body, but it seems that the buyers are still in the game. The Euro increased significantly even if the Euro-zone data have come in mixed. Price has decreased a little in the last hours, but this could be only temporary. The UK’s BRC Sales Monitor increased by 0.6%, matching the 0.6% growth in the former reading period.

The German Factory Orders have increased by 3.8%, beating the 0.6% estimate and after the 0.1% drop in the former reading period, while the Euro-zone Retail PMI decreased from 53.0 to 50.8.

You can see on the Daily chart that the rate has found strong support right above the 61.8% retracement level  and now it was almost to reach the 38.2% retracement level. It could resume the upside momentum it it will close above the lower median line (LML) of the red ascending pitchfork.

A valid breakout above the 38.2% retracement level will signal a further increase in the upcoming days, we may have a buying opportunity from above the 38.2% retracement level. A selling opportunity could come if the price will be rejected by the LML and after a failure to rest this upside obstacle.