EUR/GBP was rejected by a strong resistance area and now could decrease on the short term. We may have a minor rising wedge pattern on the EUR/GBP, but we have to wait for a confirmation.

The Euro is bearish on the short term, is decreasing versus all its counterparts and now only against the Cable. EUR/GBP drops on the mixed Euro-zone and United Kingdom data, may drop further as the buyers have shown exhaustion signs.

Technically could decrease more than 100 pips after the failure to reach a strong dynamic resistance, personally, I’m waiting for a fresh selling opportunity right now, we could have one if will come back to confirm the resistance area.

The Cable stays higher versus the Euro as the UK’s Manufacturing Production increased by 0.0% in June, matching expectations, the indicator increased after the 0.1% drop in the former reading period, the Goods Trade Balance dropped further, from -11.3B to -12.7B, more versus the -11.0B estimate. Moreover the Construction Output dropped by 0.1% in June, even if the traders have expected to see a 1.4% growth, unfortunately, the indicator stays in the negative territory. Cable received support from the Industrial Production, which increased by 0.5%, beating the 0.1% estimate and the 0.0% growth in the former reading period.

The Italian Trade Balance increased from 4.34B to 4.50B, while the French Industrial Production dropped by 1.1%, more versus the 0.6% estimate.

Price failed to close above the 0.9048 static resistance and now is going down aggressively. The corrective phase is natural after the false breakout above the 50% Fibonacci line and after the failure to reach the third warning line (wl3) of the previous descending pitchfork.

We’ll have a great selling opportunity if will come back to retest the 0.9048 static resistance, the next downside target will be at the median line (ML) of the ascending pitchfork. Is somehow expected to drop towards the median line (ML) after the failure to approach the upper median line (UML). A further increase will be confirmed only after a breakout above the wl3.