The EUR/GBP edges higher on the Daily chart and is approaching the Friday’s highest high, could jump even higher as the Cable is under massive selling pressure, the UK Brexit referendum has bought high volatility in the financial markets. The Pound continues to drop versus all its counterparts, could reach fresh new lows in the coming days, the Euro has increased because the Euro-zone economic data has come in line with expectations, the M3 Money Supply has increased by 4.9%, exceeding the 4.8% estimate, moreover the Private Loans rose by 1.6%, matching expectations. The ECB President Draghi could bring some action on the EUR/GBP as is to deliver opening remarks at the European Central Bank Forum, in Sintra.

The rate has touched the upper median line of the ascending pitchfork, has jumped much above the 61.8% retracement level, the pair has increased more than 600 pips on Friday, the rate has decreased till the end of the day, but the price has resumed the upward movement, has opened with a gap up in the morning and now is pressuring the dynamic resistance level. The pair is expected to resume the medium term corrective phase, the bullish movement may continue as long as the rate is located above the 61.8% retracement level and above the median line (ML) of the ascending pitchfork, remains to see what will happen in the coming hours, because a rejection here could attract more sellers in the coming days, which could drive the rate lower again. However a jump above the upper median line (UML), followed by a retest will open the door for more appreciation in the coming period. The ECB will also deliver a speech also tomorrow at the European Central Bank Forum, in Sintra, remains to see if his speech will bring some action on this pair, of the rate will move steadily. Technically, the rate remains strongly bullish on the short term, the next upside target could be at the 0.8398 level, we have there a strong confluence area formed at the intersection of the upper median line (UML) with the 0.8398 horizontal resistance.

I’ve added the Weekly chart to show you better the correction phase, the rate has finally managed to break above the medium term downtrend line, the price has closed above this obstacle on Friday, the rate is located much above this broken resistance, signaling that the bulls are in full control, personally I’d like to see a short retreat in the coming days to be able to go long on this pair, we’ll have a buying opportunity if the rate will retest the median line (ML) of the ascending pitchfork.

On the H4 chart you can see that upward momentum, the rate has touched the upper median line (ML) of the Daily ascending pitchfork, but looks like that is losing bullish momentum right now when he needs to break above the upper median line, we’ll have to wait for a fresh signal, even if this will be a bearish one.

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