EURUSD can't extend (much)

The EURGBP is catching more of a bid into the London 4 PM (and week end) fixing. That is helping to send the EURUSD higher (the low at 1.11609 was extended to 1.11601 but that is it), and the GBPUSD below the 1.2800 level (see earlier post on the next target for that pair).

Looking at the EURGBP, the price moved above trend line resistance at 0.8700 level. With the trend line and the natural 0.8700 level together, that break higher makes sense. The EURGBP is trading at 0.8744 currently.

You can see that buying above the 0.8700 level on the 5- minute chart too (see chart below)

More recently on the 5-minute chart, the price for the EURGBP did consolidate into the 100 bar MA (blue line). The price moved below the 100 bar MA, but could not sustain any downside momentum. Buyers took back control and fixing buying is helping to send the pair higher.

What next?

The buyers are in control with the next target at the 0.8762 (highs/low from Jan before the surge higher). Above that, the 0.8786 is the high from March. Above that and traders will be eyeing the high for 2017 (see daily chart above). Risk? Watch the trend line on the 4-hour chart (see chart below).