The currency seems too heavy to be stopped on the short term. Is trading in the red and resumes the bearish momentum. EUR/GBP is focusing on correction right now, so the perspective is bearish on the short term. Remains to see how long this retreat will be because is approaching some major downside obstacle.
Price has opened with a gap down in the morning, signaling that the bears are very strong on the short term. Technically, the corrective phase could be only temporary, could drop only to recapture more directional energy before will resume the upside movement.
The Euro drop versus the Cable even if the Italian Industrial Production rose by 0.1% in July, the economic indicator was expected to decrease by 0.5%. The Industrial Production remains in the positive territory for the third consecutive month, but the Euro wasn’t inspired.
Price goes down after the false breakout above the upper median line (UML) of the major ascending pitchfork and above the 0.9226 static resistance. Has managed to slip below the 50% Fibonacci line, a valid breakdown will signal a further drop towards the next downside targets.
The near term support will be at the 0.9000 psychological level, could also be attracted by the lower median line (lml) of the minor blue ascending pitchfork. Technically, is somehow expected to be attracted by the confluence area formed at the intersection between the median line (ML) with the third warning line (wl3) of the descending pitchfork and with the lower median line (lml) of the minor ascending pitchfork.
