The EUR/GBP continues to move in range on the short term, but I really hope that we’ll have a clear direction very soon and a fresh trading opportunity. The rate changed little today, but the narrow movement announces an aggressive action very soon.

Remains to see if this will be an accumulation or a distribution movement, technically it still maintains a bullish bias because is located above some very important support levels. The rate increased a little and deleted the morning losses, but still looks undecided on the short term.  The price wasn’t inspired by the BOE Financial Stability Report, by the Bank Stress Test Results, and by the BOE Gov Carney Speaks. On the other hand, the Euro-zone data have come in mixed today, the German Import Prices rose by 0.6% in the previous month beating the 0.4% estimate, lifting the Euro. Moreover, the German Gfk Consumer Climate remains steady at 10.7 points, below the 10.8 points, the Private Loans increased only by 2.7%, less versus the 2.8% estimate, has come in line with the 2.7% in the former reading period. The M3 Money Supply increased by 5.0%, less compared to the 5.1% estimate and versus the 5.2% in the former reporting period.

You can see on the daily chart that the rate moves in range, but I still believe that will approach and reach the fourth warning line (wl4) of the former descending pitchfork. Technically, it should break it if will reach it after the failure to reach this obstacle in the last two attempts.

As you already know, a larger drop will come only if  the rate will make a valid breakdown below the lower median line (LML) of the ascending pitchfork. Right now will be better to stay away from this pair because we don’t have any trading opportunity, but I hope that we’ll have one very soon because it cannot move like this too long.  A  great buying opportunity could come only after a valid breakout above the wl4 and after a LML retest or at least a 38.2% retracement level.