The EURGBP test midpoint
The GBPUSD fell below the floor level outlined earlier at the 1.3220-22 and the price has wandered down. The pair is testing the 38.2% of the weeks move higher this week. That level comes in at 1.31498. The low just got down to 1.3155.
While that is going on, the EURGBP has moved higher. It has moved to test the 50% of it's move lower this week. That level comes in at 0.8438. The high just ticked up to 0.8441.
So there is some support in the GBPUSD and some resistance in the EURGBP. That may slow things down a bit.
Tomorrow the BOE meets with expectations for a 0.25% cut in rates from most pundits. For the EURGBP, traders will be eyeing the 100 and 200 hour MAs at the 0.8471-75 as a key level to get to and through. For the GBPUSD a move below it's 200 hour MA (green line in the GBPUSD chart above) currently at 1.3085 and the 100 hour MA (blue line) at 1.3054, will be eyed. Failure to should see a reversal back higher. The decision comes out at 7 AM ET/1100 GMT.