The EUR/GBP has decreased in the yesterday’s trading session, has resumed the downward movement today, has reached fresh new lows, could drop further because has plunged below an important dynamic support, has decreased also below an important Fibonacci level, we still need a confirmation that the rate will decrease in the coming period, I want to remind you that the perspective remains bullish on the medium term, so this retreat could be only temporary, the rate is seeking for strong support to be able to start another bullish movement.
The Pound has increased even if the in the early morning, even if the United Kingdom data has come mixed, actually the price has opened with a gap down and now is fighting hard to recover, but the pair could drop further if the rate will stay below yesterday’s low from 0.8423. The UK Retail Sales have dropped again after 2-months increase, has plunged by 0.9%, more compared to the -0.4% estimate, has dropped unexpectedly lower after the 0.9% growth in the previous reading period, meanwhile the Public Sector Net Borrowing has dropped from 9.4B to 7.3B, has come better than the 9.3B estimate, the Cable has received a helping hand from this economic indicator.
The Euro is struggling to rebound after the ECB Press Conference, the European Central Bank has maintained the Minimum Bid Rate on hold at 0.00%, but in my opinion the ECB should take action again in the coming period because the Euro-zone remains lower.
We could have some volatility on this currency pair tomorrow when the Euro-zone will release the Manufacturing and Services PMI data, while the United Kingdom will publish the Manufactuirng and the Services PMI as well.

The price is retesting the 76.4% retracement level, could retest also the upper median line (UML) of the ascending pitchfork, could drop again if the mentioned resistance levels will reject the price, could drop to reach and retest the median line of the ascending pitchfork, the rate could be attracted by the confluence area formed at the intersection of the median line of the ascending pitchfork with the median line of the sideways pitchfork, we also have there the 61.8% retracement level there, the confluence represents a very strong support area. We could have a selling opportunity right now if the price will retest the upper median line of the ascending pitchfork and will stay below this level, as I’ve said higher, the first target is at the median line (ML), the price could drop because has found strong resistance at the sliding parallel line from outside the pitchfork, the retreat was somehow expected because has failed to reach the first warning line (WL1).

You can see on the H4 chart the price is trying to retest the upper median line of the Daily ascending pitchfork, right now has managed to jump again above the 76.4% level, a jump above the upper median line will attract more buyers, which will lead the price toward the previous high again.

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