GBP weakness reverses yesterday's move lower (and then some).
The EURGBP has reversed course yet again (it was up then down, now up again in trading this week).
Yesterday, the pair tumbled. It retested Monday's low. Today with the Carney comments, traders have taken the pair back above it's 100 and 200 hour MAs at 0.8545-47 area without much of a problem (see blue and green lines). The move higher has shot right up toward the 100 bar MA on the 4-hour chart at the 0.8622 and the 38.2% of the move down from the January 16th high (at 0.86154). Those are the next target/hurdle for the pair. ON Tuesday, the 38.2% was breached but the 100 bar MA held resistance astraders seemed to lean against the level (defined and limited risk - see video from last night).
The GBPUSD has just moved below its support level at 1.2558-68 and trying to stay below. That may start to exert more upside on the EURGBP pair but the EURUSD is also sitting on a support level at 1.0800 that if broken may send that pair lower along with the GBPUSD. So there may some continued stall against the level IF the EURUSD decides the break. Regardless, for this pair key target resistance level being tested. On a break the high from Tuesday and the 100 day MA at 0.8653, will be eyed.