EUR/GBP increased and resumed the bullish movement as the Euro is very strong on the short term, has increased versus all its rivals and not only against the Cable. Price moves in range on the short term, remains to see if this is an accumulation or a distribution movement. The rebound is natural and it was expected after the failure to reach and retest some very important support levels. We’ll see what will happen because the rate has reached a dynamic resistance today.

I’ve said in the previous analysis that the rate should take out the dynamic resistance if will reach it, so, personally, I’m still waiting for a breakout these days.

The Cable continued to drop even if the UK’s data have come in better today, the Average Earnings Index increased by 2.2% in September, more versus the 2.1% estimate, the Claimant Count Change was reported at 1.1K in the previous month, less versus the 2.0K estimate and compared to the 2.6K in the former reading period, while the Unemployment Rate remains steady at 4.3% for the third month in September, matching expectations, but wasn’t enough to save the Cable from the downside.  The Euro rallied as the Euro-zone Trade Balance increased from 21.0B to 25.0B, beating the 21.2B estimate.

Price increased and reached the fourth warning line (wl4) of the former descending pitchfork, but failed to jump above it. We’ll see what will happen in the upcoming hours because a breakout will signal a further increase while a failure to close near the wl4 will signal a minor exhaustion. You can see that the rate failed to reach this level in the last attempt, that’s why I’ve said that will take this out if will reach it.

You can see that the price moves in range, and could resume the narrow movement if will fail to jump above the 0.9048 static resistance. Will become strongly bullish on the daily chart only after a valid breakout above the median line (ML) of the major red ascending pitchfork.