The EUR/GBP is trading in the red right now and seems motivated to drop in the upcoming hours. The Cable is fighting hard to take the full control, we’ll see what will happen after the FOMC Meeting, this event will shake the currency market. A USD’s massive drop will force the Euro to regain strength on the short term and to increase versus its rivals.

However, technically it is somehow expected to drop further on the short term after the failure to reach an upside target. Maybe will be better to stay away from this pair because we don’t have any trading opportunity hoping that we’ll have one very soon as the rate is trapped between crucial support and resistance levels.

The Average Earnings Index increased by 2.5% in October, matching expectations, it has come better versus the 2.3% growth in the former reading period. Unfortunately, the UK’s Unemployment Rate remains steady at 4.3% for the fourth month in October failing to reach the 4.2% estimate, while the Claimant Count Change was reported at 5.9K in November, much above the 3.3K estimate, which is bad for the currency, but the Pound wasn’t too impressed.

The pair dropped and stands below the short term 50% retracement level and below the long term 100% Fibonacci level. Remains to see what will happen after the last days false breakdown, personally I still believe that will pressure the LML again and may close and stabilize below it. A valid breakdown will signal a further drop, it is somehow expected to drop further.

Personally, I believe that will drop because it has reached the LML after several attempts and because has failed to reach the fourth warning line (wl4) of the former descending pitchfork. Price will breakout above the fourth warning line if will reach it, we’ll have a buying opportunity if this scenario will take shape. You have to be patient because I hope that we’ll have a great trading opportunity very soon.