The EUR/GBP rallied and now looks determined to reach new highs if will have the power to close above two important resistance level. Actually, the price is pressuring a confluence area, a valid breakout will accelerate the upside movement. The pair goes higher again after the failure to reach and retest a dynamic support level.

I very important what will happen in the upcoming hours because a false breakout or a rejection will send the rate down again.

As you already know, the Pound drops like a rock versus all its rivals since Monday and could drop much deeper in the upcoming days.

Maybe the Cable has increased a little only because the United Kingdom Construction PMI jumped from 50.2 to 51.4 points, beating the 50.5 estimate signaling that the expansion continues in the construction sector.

The Euro-zone data have come in mixed today, the Spanish Unemployment Change dropped from 63.7K to 6.3K in the previous month, but has come in better versus the -7.2K estimate. The German Import Prices rose by 0.5%, beating the 0.4% estimate and the 0.3% growth in the former reading period, while the German Retail Sales dropped unexpectedly by 0.7%, even if the traders have expected to see a 0.8% growth after the 1.1% drop in the former reading period.

The rate moves in range on the short term but seems motivated o breakout from this pattern and to continue the minor bullish momentum. You can see that the price has found strong support at the 100% Fibonacci level and the short-term 50% Fibonacci retracement and now is pressuring the lower median line (LML) of the ascending pitchfork. It has also reached the 38.2% retracement level, we have a strong confluence between the mentioned levels, so will be better to stay away till we’ll have a clear trading signal. A breakout followed by an LML retest will signal a further increase.