The EUR/GBP continues to increase and is heading toward new highs as the Cable remains sluggish versus all its counterparts. The currency pair is in a correction phase after the last descending swing, the price still points to higher levels. We could have some action on this pair today as the economic calendar is filled with important economic events from the Euro-zone and from the United Kingdom.
The correction movement is approaching the 61.8% retracement level, the price has managed to jump and close above the 50% retracement level after a short consolidation on the lower timeframes, the price has become strongly bullish after breaking above the median line (ml) of the ascending pitchfork. The price is moving upward inside of the ascending pitchfork’s body, the outlook will remain bullish as long as the price is be trapped inside if this pitchfork. The price has edged higher after a short term consolidation between the 0.0% and the 23.6% retracement level.
Some of the Euro-zone countries are to release the Services data, the Germany has released the Factory orders earlier, the economic indicator has decreased unexpectedly by 1.2%, even if the currency traders have expected a 0.5% growth. Eurostat will publish the Euro-zone Retail Sales indicator, the retail sales may increase by 0.2% in February, lower compared to the 0.4% in January. The United Kingdom Services PMI will be released as well today, the services sector is expected to continue the expansion, the economic indicator could increase from 52.7 to 53.9 points in March, this event could save the Cable from downside. The Euro is waiting for a bullish spark from the German, Italian, Spanish, and French Services PMI data.
The pair is moving up along the median line of the ascending pitchfork, the price has retested this level and seems very strong, has rejected the price. The next upside target will be at the 61.8% retracement level and also on the upper median line (UML) of the ascending pitchfork, where he may find very strong resistance. The rate has retreated a little in yesterday’s trading session, is struggling to recover right now, but we can have a short decrease after the last bullish momentum, the price could come down to retest the 50% retracement level and maybe also the median line (ML) before will start another bullish momentum.
The pair has found temporary resistance at the 50% Fibonacci line, you can see that this level represents a very strong resistance, the price has failed to jump and close above this obstacle in the last attempts. Looks like that the buyers are attempting to push the price higher after yesterday’s retreat, remains to see if the price will have enough energy to break above the 50% Fibonacci line (ascending dotted line), a rejection will force the price to decrease on the short term, could decline toward the support area between the 0.7946 and the 0.7928 or lower to retest the 50% retracement level.