FXstreet.com (Córdoba) - Cable accelerated it losses against the Euro after the report that showed a decline of 1.9% in UK Industrial Production versus market expectations of a 0.3% increase. EUR/GBP broke an important resistance zone at 0.9200 and jumped to 0.9275, posting a one-week high.
The Euro is rising for the third consecutive day on Tuesday, accumulating an increase of more than 150 pips. Cable weakened after being unable to break below 0.9080. A week ago the pair peaked at 0.9298, posting the highest price since March.
Nicole Elliott, senior technical analyst, sees a potential for a bigger move in the pair: The jury is still out as to whether the rally to 0.9305, above the top of the large potential 'flag' formation, is a 'spike high' and 'extension' or whether this is the start of something much bigger. Being eternal optimists we are currently hoping that it will be the former, and that we are now due a broad sideways move roughly between 0.8800 and 0.9200. However, note that the longer we hold above the top of the 'channel' the greater the risk for a serious rally where the minimum measured target of the extremely large continuation 'flag' is 1.0300.