The EUR/GBP is moving sideways on the lower time frames, but the bears look determined to drive the price toward fresh new lows in the coming days as the price has failed to stay higher, the currency pair has decreased below two important support levels, the rate has retested these broken level and now could resume the bearish movement. The Cable seems very strong lately, the currency is trying to rebound and to recover after the impressive decrease, the Pound has decreased a little in the last hours versus the greenback as the US data have come better, but the UK’s currency has regained control and now struggling to reach new highs versus all its rivals, not only against the Euro and versus the greenback.
Today we had low impact data from the Euro-zone and from the UK, the figures didn’t have any impact on the price action, the UK’s BBAMortgage Approvals have dropped from 41.8K to 40.1K, have dropped below the 40.2K estimate, while the Belgian NBB Business Climate has increased from 0.7 to 1.0 level, despite that the estimate was -0.6.
Tomorrow will best if you’ll keep an eye on the economic calendar because we’ll have important data from the UK and from the Euro-zone, the Cable could receive a helping hand from the Prelim GDP if the economic indicator will increase by 0.5% as expected.
The price has found strong resistance at the sliding parallel line from outside the ascending pitchfork and then has decreased and has fallen below the upper median line (UML) of the ascending pitchfork, has fallen also below the 76.4% retracement level, has retested these levels and now could resume the bearish movement.
The next downside target will be at the median line of the ascending pitchfork and at the 61.8% retracement level, the price could be attracted by the confluence between these two support levels, the price could drop because lost the directional energy and now is seeking for strong support. We’ll have a strong selling opportunity if the rate will increase again and if will test the confluence formed at the intersection of the upper median line (UML) with the upper median line of the blue descending pitchfork.