EUR/GBP extends the upside movement on the daily chart, the bulls are in full control and should it towards new peaks. It is strongly bullish on the short term and could be attracted by a confluence area. Technically should increase further on the short term as the Euro is very strong on the short term. The EUR appreciated significantly versus all its counterparts in the second part of the day and looks motivated to hit new highs in the upcoming days.

Price rallied also because the Cable was punished by the UK’s Rightmove HPI indicator, which has dropped by 0.9% in August. The economic indicator plunged after the 0.1% growth in the former reading period.

The UK is to release the Public Sector Net Borrowing and the CBI Industrial Order Expectations tomorrow, while the Euro-zone will publish the German ZEW Economic Sentiment.

Price is trading right above the 0.9150 psychological level and is targeting the next upside targets from the upper median line (UML) and from the 0.9226 previous high. It’s hard to believe that will reach the confluence area formed by the 0.9226 with the UML. We’ll see how will react when will touch these levels, a valid breakout will confirm a further increase on the short and medium term, only a rejection will send the rate down again.

Could be attracted by the confluence area formed at the intersection between the upper median line (UML) with the fourth warning line (descending dotted line). Should increase after the valid breakout above the third warning line (wl3) of the minor descending pitchfork.

A rejection from the 0.9226 level will signal another corrective phase and a potential sideways movement. A reversal will be confirmed only after a breakdown below the median line (ML) of the major ascending pitchfork.

You should know that a failure to reach and retest the mentioned resistance levels will send the rate tumbling towards fresh new lows on the daily chart.