The EUR/GBP has increased  a little, but is under pressure and has failed to stay higher, looks determined to close the Monday’s gap up. Could decrease further if will close this gap, the Cable is strong on the short term, is appreciating also versus the Yen and versus the greenback.

We’ll see what will happen because the rate continues to move sideways on the Daily chart, technically is somehow expected to start a large drop, but still need a confirmation before we take action. Right now we don’t have a trading opportunity, could drop because the behavior has changed on the short term, price started to make lower highs, signalling a selling pressure.

We had a very busy day, the economic calendar was filled with high impact data from all over the world, the UK and Euro-zone data have come in mixed. The United Kingdom Prelim GDP rose by 0.3% in the first quarter, failing to meet the 0.4% estimate, the BBA Mortgage Approvals dropped from 42.2K to 41.1K , much below the 42.1K estimate, while the Index of Services surged by 0.5%, matching expectations.

The Euro could drop as the Euro-zone data have failed to impress today, the Spanish Flash GDP  rose by 0.8% in Q1, beating the 0.7% estimate and the 0.7%  growth in the previous reading period, while the German retail sales rose by 0.1%, matching expectations, has received support also from M3 Money Supply, which has increased by 5.3%, more compared to the 4.7% estimate. Has taken a hit from the french Flash GDP, German Import Prices, French Consumer Spending, French Prelim CPI, the economic indicators have come in worse that predicted.

Price has dropped again after the false breakout above the downside line of the former symmetrical triangle, has slipped below the upper median line (uml) of the descending pitchfork. A retest followed by a drop will  attract more sellers on the short term, which will drive the rate much lower, a breakdown from the major ascending pitchfork’s body will be favored.

You can see that continues to move sideways, between the 100% and the 76.4 % Fibonacci levels, I’ve said in my previous articles that we’ll have a large drop if the rate will stabilize below the 76.4% retracement level and below the LML.