The EUR/GBP has decreased a little today, but maintains a bullish perspective as is still located above a major dynamic support. Continues to move sideways on the short term, we’ll have a clear direction only when will escape from the sideways movement. Could increase in the coming days as the Pound has become strongly bearish again, has decreased sharply also versus the greenback in the last days.
The pair has climbed above the 0.8586 yesterday’s high, but has failed to climb much higher as the Euro-zone data have failed to push the Euro higher, the economic figures have come in mixed, while the Pound has received a little support from the United Kingdom data.
The rate has decreased a little after the United Kingdom Construction PMI was released, the economic indicator has managed to increase from 52.2 points to 52.5 points, beating the 52.2 estimate, has reached the highest level of the last 2-months, signalling that the expansion continues in the construction sector.
The Euro-zone data has come in mixed today, the Unemployment Rate has remained steady at 9.6%, matching expectations, the PPI rose by 0.7% in January, exceeding the 0.5% estimate. Moreover the CPI Flash Estimate rose by 2.0%, beating the 1.8% estimate , while the Core CPI Flash Estimate has remained steady at 0.9% for the third month in February.
The Italian Monthly Unemployment Rate has remained steady at 11.9% in January, even if the traders have expected to see an increase to 12.0 points, while the Spanish Unemployment Change has dropped unexpectedly in February, was reported at -9.4K, much lower than the 5.2K estimate, the indicator has dropped sharply after the 57.3K in the previous reading period. The German Import Prices have come in better as well, have increased by 0.9%, beating the 0.5% estimate, but the Euro wasn’t impressed.

EURGBPdaily

The price has changed little today, has tried to decrease after the last four days decrease, could come down to retest the median line (ML) of the major ascending pitchfork before will climb much higher. Is expected to increase further after the false breakdown below the median line (ML) of the major ascending pitchfork and after the breakout from the minor descending pitchfork's body. The perspective remains bullish as long as the price is trading above the median line (ML) of the major ascending pitchfork. The failure to drop below the 76.4% Fibonacci line has invalidated the potential Head and Shoulders pattern, is somehow expected to approach again the 100% Fibonacci line and the upper median line (UML) of the major ascending pitchfork.

EURGBPh4

I've added a minor ascending pitchfork on the H4 chart, will increase further as long as will stay inside this minor pitchfork's body, we'll have a great buying opportunity if the price will come down to test and retest the median line (ML) and the lower median line (lml) of the minor ascending pitchfork, could be attracted by the median line (ml) of the minor ascending pitchfork.

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Olimpiu Tuns

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