The EUR/GBP has increased today and has climbed above a major dynamic resistance, but remains to see if this will be a valid or false breakout. Price continues to move sideways on the daily chart, but maintains a bullish perspective as the major support line remains intact. Technically is also expected to increase further after the failure to reach and retest some support levels, the bulls are in control and could drive the rate towards new highs. Has increased on the mixed Euro-zone and UK’s data, but we still have to wait for a fresh trading signal and for a clear direction because I’ve said that the rate is moving into an extended sideways movement.
Price has increased as the Euro has managed to appreciate versus all its rivals, has rallied also versus the greenback and versus the Yen, but remains to see what will happen because has failed to reach the 0.8749 previous high, the today’s rally was stopped by the 0.8747 level.
The United Kingdom’s BRC Shop Index decreased by 0.4% in the current month, less versus the 0.5% drop in April, meanwhile the Gfk Consumer Confidence surged from -7 to -5 points, has come in better because the economists have expected to see a drop to -8 points. Moreover the Net Lending to Individuals dropped from 4.7B to 4.3B in the last month, has come in worse than the 4.5B estimate, the Mortgage Approvals dropped from 66K to 65K, the estimate was 66K, the Pound has receive a helping hand from the M4 Supply which has increased by 1.2%, beating the 0.4% prediction.
The Euro-zone Unemployment Rate dropped more than expected, from 9.5% to 9.3% in the April, has come lower than the 9.4% estimate and has reached the lowest level since June 2009, the Core CPI Flash Estimate increased by 0.9%, less versus the 1.0% forecast and versus the 1.2% growth in the former reading period. Meanwhile the CPI Flash Estimate increased by 1.4%, less versus the 1.5% prediction and versus the 1.9% growth in the former reading period.
The German data have disappointed today, the Retail Sales dropped by 0.2% in April, even if the traders have expected to see a 0.4% growth, the indicator has dropped significantly after the 0,2% growth in March, while the German Unemployment Change increased from -15K to -9K, much more compared to the -14K estimate.

EURGBPdaily

Price has increased and has climbed above the median line (ML) of the ascending pitchfork, a valid breakout above this line will attract more buyers, which will drive the price towards fresh new highs, but we'll have to wait for a fresh trading signal because right now we don't have a trading opportunity. We'll have a great buying opportunity if the rate will close above the median line (ML) and if will come to retest the broken dynamic resistance. A selling opportunity will appear if we'll have a false breakout above the ML and if the rate will retest the dynamic resistance.

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