EURUSD support /GBPUSD resistance also helping
The EURGBP took a turn to the downside in the NY session this morning. The momentum can be attributed partly to the breaking of the 100 hour MA line (at 0.7834). The line held on the first test, corrected modestly, and then took a steeper turn to the downside -breaking through that MA line and heading lower. Traders turned their bias around.
The price decline, has found a limit. The 100 day MA comes in at 0.78035. The low reached 0.7806. Buyers took profit. It just makes send on the first test.
Trader short on the break need to see tha MA line broken to open up further downside. Resistance is now the 100 hour MA.
What may be in influence is what has happened in the EURUSD and the GPBPUSD.
While the EURGBP was approaching the support at the 100 day MA, the EURUSD was approaching it's own support against the 200 bar MA on the 4 hour chart at 1.13064 (key support). On Unemployment Friday, the EURUSD found resistance against this level and held briefly before pushing above it and staying above it. The market has a memory. The low got to within 5 pips of the 200 bar MA at 1.1311.
Over in the GBPUSD, that pair was up retesting the 200 hour MA at the 1.4500 area. The price is back down to 1.14470 now.
So the combination has helped contribute to the rebound tone in the EURGBP.