A contributor to the action today in the GBPUSD and EURUSD (pressured GBPUSD and supported EURUSD) is the EURGBP. This pair bottomed yesterday, tested the 100 hour MA and held that moving average (blue line in the chart above) in the London session. Traders with defined and limited risk against the 100 hour MA, helped squeeze the price higher.
- The push higher has extended above the 200 hour MA (at 80.80165 – support now). This is the first move above this MA level since May 1st.
- The next target is the 38.2% of the months move down at the 0.80433 (extended up to the May 11th high of 08047 level) I would expect sellers against this level today with stops on a break above (and a target of 0.80725).
Support will now come in at the 80.16-21 level.
- This is the 200 hour MA (0.8016) and
- The 38.2% (0.8021) of the move up from the low on the swift leg higher over the last few hours of trading.
