The price is trading in the red again and seems poised to resume the downside movement. Is pressuring an important static support, remains to see if will have enough bearish energy to take this out. Is located above the 0.8773 previous low, but technically is should drop much below it because is located in the seller’s territory.

Only a failure to close below the 0.8773 previous low will signal a minor increase, well see what will happen in the upcoming days. Price is expected to drop further after a breakout below some major support levels, it has come back to retest the broken levels, but failed to retest them.

The Euro-zone and the Uk’s data should bring life on this pair, the ECB Economic Bulletin will be released first. The ECB President Draghi will speak in the afternoon, but I don’t believe that will have any impact, while the Consumer Confidence could remain steady in the negative territory, at -2 points. On the other hand, the Cable could be supported by the Public Sector Net Borrowing, which is expected to increase to 6.5B, from -0.8B, while the High Street Lending could climb from 41.6K to 41.7K.

Price changed little today, but the economic data could force it to move significantly. Is pressuring the short term 50% retracement level and the 100% long-term level, a valid breakdown will confirm a drop at least towards the 61.8% retracement level. The next major downside target will be at the lower median line (LML) of the major ascending pitchfork. EUR/GBP could be attracted by the LML after the failure to retest the median line (ML).

You can see that has come back to retest the broken support levels, but the bulls weren’t strong enough to push it higher.

Personally, I would have liked to see a retest of the third warning line (wl3) of the descending pitchfork because we would have a great selling opportunity from this level. Now only a minor distribution below the 50% retracement level will give us a chance to go short again.