EUR/GBP increased significantly today managing to recover after the Friday’s impressive drop. Has come back to retest a major resistance level, we’ll see how will react in the upcoming days because is premature to say that we’ll have a broader corrective phase. The Cable lost ground versus the Euro on the mixed Euro-zone numbers and on the poor UK’s data.

The Pound dropped also versus the US dollar and versus the Yen, not only versus the Euro. The cable has taken a hit from the United Kingdom Construction PMI, which decreased unexpectedly lower, was reported at 51.1 points, much below the 52.1 estimate and versus the 51.9 in the former reading period.

The Euro increased despite that the Spanish Unemployment Change reached an amazing level, was reported at 46.4K, much above the 16.3K estimate, reaching the highest level since February 2017, the PPI disappointed as well because has increased only by 0.0%, less versus the 0.1% estimate.

The Euro has received a a helping hand from the Sentix Investor Confidence, which increased from 27.7 points to 28.2 points, even if the economists have predicted a drop to 27.4 points. You should be prepared for a high volatility in this week, the economic calendar is filled with high impact data. The main event if this week will be on Thursday, the Minimum Bid Rate is expected to remain steady at 0.00%, but the ECB Press Conference should bring a high volatility.

Price has come back to retest the 0.9226 horizontal resistance, a rejection will signal a drop at least till will reach the 0.9048 static support. The next major downside target will be at the median line (ML) of the major ascending pitchfork. The perspective is still bullish as long as is trading above the median line (ML).

Could come to retest also the fourth warning line (wl4)  of the descending pitchfork before will drop much deeper. Only a valid breakout above the wl4 and above the UML will confirm a further increase.