EUR/GBP increased and resumed the upside movement, right now is pressuring an important static resistance, a valid breakout will attract more buyers. Is strongly bullish as the Cable is under pressure versus all its rivals, has dropped significantly also versus the USD and versus the JPY in the previous week.
Technically should approach and reach new highs in the upcoming period because is located in the buyer’s territory. The Euro increased today, even if the Euro-zone data have come in worse than expected, the currency has appreciated also versus the greenback, Yen and CHF.
The German Industrial Production dropped by 1.1% in June, even if the traders have expected to see a 0.25 growth, the indicator has plunged after the 1.2% growth in May, while the Sentix Investor Confidence dropped from 28.3 to 27.7 points in August, has come in below the 27.8 estimate.
The Cable dropped versus the Euro, even if the UK’s Halifax HPI surged by 0.4% in July, beating the 0.3% estimate, the indicator increased sharply after the 0.9% drop in the previous reading period. Should climb much higher, personally, I believe that only the fundamental factors could force the rate to turn to the downside again.
Price is pressuring the 0.9048 static resistance, a valid breakout will confirm a further increase. The next upside target will be at the third warning line (wl3) of the minor descending pitchfork. The next major upside target will be at the upper median line (UML) of the major ascending pitchfork. Strong resistance could be found also at the 0.9226 swing high.
Is moving sideways between the 76.4% retracement level and the 0.9226 static resistance, the perspective is bullish despite the extended sideways movement, so a breakout is favored. Another leg lower will come only if the rate will drop and will stabilize below the median line (ML) of the ascending pitchfork.
We’l have a minor decrease if the 0.9048 or the third warning line (wl3) will reject the price, right now is better to stay away because we don’t have any trading opportunity.