The EUR/GBP posted humble gains today and tries to resume the yesterday’s minor bullish candle. It seems like is losing the bearish momentum and could increase a little. However, you should know that the perspective remains bearish despite a minor increase.

Could increase a little only because the Cable is under massive selling pressure versus all its rivals and not only against the Euro. Price could come to test and retest some broken support levels (support turned into resistance) before will resume the downside movement.

Is on a declining path, so the perspective remains bearish on the short term, right now we don’t have any trading opportunity, that’s why you should stay away from this pair.

We may have some action later, after the BOE Gov Carney speech at the Bank of England’s conference celebrating 20 years of independence, in London.

The Euro increased a little even if the Euro-zone data have failed to impress, the Spanish Flash CPI increased by 1.8%, matching expectations, has come in better versus the 1.6% growth in the former reading period. Remains to see how will react later, after the German Prelim CPI will be released, the indicator could increase by 0.1%, matching the 0.1% growth in the former reading period.

Price increases and is very close to hit the short term 50% retracement level and the 100% Fibonacci level. It could only retest the mentioned resistance levels before will resume the bearish movement towards the 61.8% retracement level and towards the lower median line (LML) of the major ascending pitchfork.

Only a valid breakout above the third warning line (wl3) of the descending pitchfork will announce a further increase towards the median line (ML) of the major ascending pitchfork.

We’ll have a major drop if the bears will be strong enough the drive the rate outside the ascending pitchfork’s body. Personally, I believe that it should take out the lower median line (LML) if will touch it, you can notice that has failed to do this in the last two attempts.