EUR/GBP is trading in the green and tries to stay above dynamic support despite the yesterday’s breakdown. It has managed to erase the yesterday’s losses and is struggling to stay much above the 0.8773 previous low. Technically, it is expected to drop further on the short term because is located under some important dynamic support levels.
The Euro remains strong on the short term, has managed to increase also versus the USD and versus the CHF. The Cable has lost ground versus the Euro as the Euro-zone data have impressed in the European session. The Flash Manufacturing PMI increased from 57.4 points to 58.2 points, signaling that the expansion continues in the manufacturing sector, while the Flash Services PMI is expected to increase from 54.7 to 55.6 points, beating the 54.7 estimate.
The German and French Flash Manufacturing PMI and the Flash Services PMI have come in better than expected as well.
Price rallies aggressively and tries to stay above the 100% Fibonacci level. A false breakdown below the mentioned level will signal an increase at least till the third warning line (wl3) of the former descending pitchfork. We may have a minor sideways movement here before will decide where to go. A drop towards the lower median line (LML) was expected, but it could come to retest the median line (ML) as well before will drop again.
