EUR/GBP extends the latest gains and is targeting another upside target. Is trading in the green and looks motivated to resume the upside movement after the yesterday’s breakout above a dynamic resistance line. The outlook is bullish and will remain the same because the rate is located in the buyer’s territory.

Price edged higher in the yesterday’s session as the Cable was ruined by the dovish BOE, as you already know, the Bank of England has maintained the Offcial Bank Rate unchanged at 0.25%, matching expectations.

EUR/GBP changed little today, could retest a broken dynamic resistance before will climb much higher. You should know that the rate touched the 0.9048 medium term resistance in the yesterday’s session, only a valid breakout above this level will validate a further increase on the daily chart.

The pair looks undecided right now even if the Euro-zone data have come in mixed, the German Factory Orders rose by 1.0% in June, beating the 0.6% estimate, the Italian Retail Sales surged by 0.6%, more versus the 0.1% estimate and compared to the 0.1% drop in the former reading period. The Euro-zone Retail PMI dropped from 53.2 to 51.0 points.

Price jumped above the 50% Fibonacci line, but found resistance at the 0.9048 static obstacle and now could pressure the broken dynamic resistance. A false breakout above the 50% Fibonacci line will send the rate towards the lower median line (LML) again. Resistance can be found at the third warning line (wl3) as well.

The next major upside target will be at the upper median line (UML) of the major ascending pitchfork, could be attracted also by the 0.9226 major upside obstacle, because could move in the range between the 0.9226 and the 76.5% retracement level.

Technically should climb much higher after the breakout from the extended range between the 100% Fibonacci line and the 76.4% retracement level. We’ll have a buying opportunity only if will come down to retest the median line (ML) of the ascending pitchfork. A major drop is off the table right now.