Daily Market Report – EUR/GBP Gaining Pace
EUR/GBP Breakout Favored
EUR/GBP is still bullish on the Daily chart and looks motivated to take out a dynamic resistance. Price is going higher as the Euro has managed to increase versus its rivals, but we have to wait for a valid breakout to be sure that will resume the upside movement. Euro is bullish versus the Cable, even if the Euro-zone Industrial Production dropped by 0.6% in June, more versus the 0.4% estimate. The economic indicator plunged after the 1.3% growth in the former reading period.
EUR/GBP Daily Chart
We have a poor economic calendar today, the rate is driven by the technical factors, so a breakout above the third warning line (wl3) of the former descending pitchfork looks favored. I’ve said in the previous report that will climb much higher if will have enough energy to stabilize above the 50% Fibonacci line.
The next major upside target will be at the upper median line (UML) of the major ascending pitchfork, could also hit the 0.9226 static resistance. Price is trading in the green as the Cable is bloodless on the short term, GBP slips lower also versus the USD.
It is expected to approach and reach the 0.9226 major resistance because is moving in range, you can see that we have an extended sideways movement on the Daily chart.
Only a breakout above the 0.9226 swing high will confirm a medium and long term increase, but is premature to say what will happen because a rejection here will send the rate tumbling on the short term.
USD/JPY Valid Or False Breakout
USD/JPY Daily Chart
USD/JPY increased significantly today after the Friday’s indecision. Is pressuring the downside line of the symmetrical triangle and the 50% retracement level. Price continues to move in range between the 23.6% retracement level and the 50% level, only a valid breakdown below the 50% retracement level will confirm a large drop.
GBP/JPY Selling Opportunity?
GBP/JPY Daily Chart
Price rebounded and now is retesting the broken red uptrend line, a valid breakdown will validate a further drop. Technically is expected to drop further after the failure to reach the down red sloping line and to stay above the warning line (WL1). A further drop will be confirmed if will decrease again after the minor rebound. Will drop quickly if will stay below the median line (ml) of the minor descending pitchfork.