The EUR/GBP has increased today and looks determined to take out an important dynamic resistance, has resumed the minor rebound as the Pound is trading in the red again versus all its rivals, not only versus the Euro. The price maintains a bullish perspective on the short to the medium term because is still trading above some important support levels. We still have to wait for a fresh trading signal before we take action, personally I’m waiting for confirmation that the price will start a broader rebound.

We have a narrow movement right now, but I hope that we’ll have a clear direction very soon, remains to see the direction.

The Euro has increased also because the Euro-zone data have come in better today, the Current Account was reported at 31.0B, much higher compared to the 28.7B estimate, the economic indicator remains above the 30.0B for the second month in December and has helped the Euro to resume the bullish momentum versus the Cable. The Cable continues to drop also because has taken a blow from the United Kingdom Retail Sales report, the pound is on a declining path on the short term.

The price continues to increase after the false breakout below the median line (ML) of the major ascending pitchfork, now is harassing the  upper median line (uml) of the minor descending pitchfork, a valid breakout outside the descending pitchfork’s body will show us that the bulls are in control.

We could have a great buying opportunity if the rate will come down to test and retest the confluence area formed at the intersection between the median line (ML) of the ascending pitchfork with the upper median line (uml) of the descending pitchfork. Could find resistance again at the confluence area formed between the 50% Fibonacci line (ascending dotted line) with the downtrend line (descending dotted line), the major upside targets are at the 100% Fibonacci level and higher at the upper median line (UML) of the major ascending pitchfork, will approach and reach these levels if will continue to stay above the ML.