The price has decreased sharply today and is very close to touch the 0.8368 yesterday’s low, is approaching an important static support, which could stop the bearish movement, actually we’ll see what will happen because looks very heavy and could drop much deeper in the coming days. The Cable has increased because has received a helping hand from the United Kingdom economic data, the Pound has increased sharply also versus the greenback, actually has rallied versus the other currencies and looks determined to reach new highs.

Technically the EUR/GBP was expected to drop because has failed to bounce back, the current decrease was expected after the behavior has changed. The Euro has fallen on the Euro-zone mixed data, the PPI has increased by 0.8% in October, has beaten the 0.4% estimate, has increased sharply also versus the 0.1% growth from September, while the Spanish Unemployment Change has come better than the economists estimate, was reported at 24.8K, higher than the -25.8K, but has come below the 44.7K from the last reading period,but as I’ve said higher, the Cable was boosted by the Construction PMI indicator which has beaten the specialists prediction.

The rate has fallen significantly today and is very close to reach the yesterday’s low, you can see that has squeezed in the yesterday’s US session after the morning drop, but now looks determined to hit the 76.4% retracement level. Remains under selling pressure because has failed to rebound from above the 50% Fibonacci line (ascending dotted line), I’ve said in my previous articles that will increase again only if will have enough power to climb again above the upper median line (UML) of the ascending pitchfork and above the 100.0 Fibonacci level, this scenario was less likely after the failure to stay higher, the behavior has changed when has dropped below the first warning line (Wl1) of the ascending pitchfork. The sentiment will change as well if will fall below the 76.4% and most important below the median line (ML) of the ascending pitchfork, we could have a selling opportunity if the price will stabilize below the mentioned support levels.