The EUR/GBP has increased today and looks determined to start another leg higher on the short term, we still need a confirmation that the rate will start a larger increase. Now has retested a major dynamic support and has failed to take out this major obstacle, signalling that the bulls are still in the game and could take the full control again.

The pair continues to move somehow sideways on  the short term, so will be better to stay away from this pair until we’ll have a clear direction and a fresh trading signal, right now we don’t have any trading opportunity.

The Euro has received support from the Euro-zone Trade Balance report, the trading surplus has increased from 22.2B to 24.5B, beating the 22.5B estimate, has reached the highest level of the last 3-months. Meanwhile the United Kingdom data have failed to save the Cable, has dropped sharply also versus the greenback today, not only versus the Euro. The UK’s data have come in mixed today, the Unemployment Rate remains steady at 4.8%, matching expectations, while the Claimant Count Change has dropped from -20.5K to -42.4K, even if the economists have forecasted an increase to 1.1K. The Pound has taken a hit from the Average Earnings Index, which  has increased only by 2.6%, less versus the 2.8% estimate.

The price has increased a little after the Monday’s false breakout below the median line (ML) of the major ascending pitchfork, could climb much higher if will stay above the mentioned dynamic support. I’ve said in my previous articles that a drop below the median line (ML) will open the door for more declines, so you should be careful because the price could drop anytime as long as is trading inside the minor descending pitchfork.

So, the price should escape from the minor descending pitchfork if will want to start a larger rebound, we could have a buying opportunity if the rate will break above the upper median line (uml) of the descending pitchfork. I’ve said in the last weeks that the perspective remains bullish as long as the rate is trading above the median line (ML), so only a drop below this level will change the sentiment.