The EUR/GBP has increased today and looks determined to reach new highs in the coming period, could approach the previous highs because the Pound remains sluggish versus its rivals. The currency pair has increased even if the United Kingdom and the Euro-zone data have come in mixed. The currency pair maintains a bullish perspective because the Cable could take another hit from the BOE, the Bank of England could add more stimulus measures in the coming weeks and could punish the Pound again. The Cable has dropped even if the United Kingdom Prelim GDP has increased by 0.5% in Q3, has come better versus the 0.3% estimate, however has increased less compared to the 0.7% growth from Q2. The CBI Realized Sales has increased unexpectedly higher, from -8 to 20 points, has come better than the -2 estimate, while the Index of Services rose by 0.8%, matching expectations.
Moreover the Spanish Unemployment Rate has dropped from 20.0% to 18.9%, has come much better compared to the 19.3% estimate. The 3 Money Supply has increased only by 5.0%, less than the 5.1% estimate, the Prive Loans rose by 1.8%, less versus the 1.9% estimate.
The price has increased after has found temporary support at the first warning line (WL1) of the ascending pitchfork, could approach again the 0.9081 resistance level and also the 250% Fibonacci line, we’ll see how the rate will react after will touch these levels, but as I’ve said, the perspective remains bullish as long as the rate is trading above the 100% Fibonacc level and above the upper median line (UML) of the ascending line. The rate could try to reach also the 0.9226 swing high, a failure to increase above this major static resistance level could help the sentiment to change on the short term.
The current retreat was expected after the impressive rally from October 07, technically the rate was expected to drop because has failed to reach the second warning line (WL2) of the ascending pitchfork, we’ll have a larger decrease only if the rate will fall again below the 100.0% Fibonacci level.