The currency pair increased and resumed the yesterday’s bullish candle, it should jump much higher in the upcoming period after the breakout above a major dynamic resistance. Technically, it should increase further because has failed to take out a support level. EUR/GBP increased on the mixed Euro-zone and UK’s data.

I’ve said in the last weeks that the rate should breakout above the dynamic resistance if will touch it, so the scenario has taken shape. We’ll see what will happen in the upcoming days because the breakout still needs to be confirmed.

The Euro-zone Final Services PMI was reported at 56.6 points, higher versus the 56.5 estimate and compared to the 56.5 estimate, the German Final Services PMI remained steady at 55.8 points for the second month in December, while the Italian Services PMI increased from 54.7 to 55.4 points, exceeding the 54.7 estimate.

The Spanish Services PMI increased from 54.4 points to 54.6 points, but failed to reach the 54.7 estimate, while the French Final Services PMI dropped from 59.4 to 59.1 points, even if the traders have expected to see the indicator steady at 59.4  level.

On the other hand, the United Kingdom Services PMI increased from 53.8 points to 54.2, beating the 54.1 estimate, the Net Lending to Individuals was reported at 4.9B, matching expectations, but the cable wasn’t impressed by the good data.

The rate has jumped above the fourth warning line (wl4) of the formed descending pitchfork signaling that we may have a larger upside movement. I’ve said that it will take out the dynamic resistance if will reach it. It should climb much higher after the retest of the lower median line (LML) of the major ascending pitchfork.

Technically, it could be attracted by the median line (ML) of the ascending pitchfork. The perspective remains bullish as long as is trading within the ascending pitchfork’s body, only a valid breakdown will signal a larger drop.