Tests 10 hour MA
Last week post the US election fireworks, the GBPUSD divorced itself from "buy the dollar" crowd. The GBP was nicely supported with the GBPUSD moving higher, the EURGBP moving lower, the GBPJPY moving higher today.
Today, the GBPUSD is following the USDs move higher. In the process, the price has moved back down toward the 100 hour MA (blue line in the chart above). That MA is being tested as the US stock market trading gets underway. Earlier in the European/London morning session, that MA was broken but failed. What has given the shorts more of a reason to sell (at least today), is that the correction off that low, stalled at the Nov 4th swing high at 1.2557 level. Holding that level, seems to have given sellers more of a reason to sell.
Should we continue the move lower (and break below the 100 hour MA), the low for the day, followed by the 200 hour MA and upward sloping trend line (follow green circles) are sitting on top of each other at the 1.2445 level. They should be a support target below.
What is the EURGBP doing today?
The pair moved sharply lower in trading last week, but stalled near the 100 day MA at 0.86175 area. The price traded above and below that MA on Friday (see line marked D1 MA:100 below). Today we are seeing more of the up and down action from Friday. However, NY traders are looking to move away from that MA again (see 4-hour chart below). We are currently testing a congestion area at the 0.8561-81 area (also the low from last week), but the move away from the 100 day MA is more bearish for the pair again.
