EURGBP goes back higher
There was a report from Der Spiegel that German governement is said to be prepared for deficit spending in case of a recession.
That news has given the EURUSD a lift. The price is back above the 1.1100 level and looks to revisit the high for the day at 1.11115 and the 61.8% of the move up from the August 1 low (see chart above). A topside trend line is also in the area.
A move above could lead to more upside momentum as shorts from the move lower today are squeezed into the weekend.
Staying below keeps the sellers in control.
As mentioned in an earlier post, not only is the 1.11115 the high for the and the 61.8% retracement, back in April, May and in July, the price of the EURUSD stalled in the 1.1100 to 1.1109 range. So that area is a key barometer for the bulls and the bears. Stay below is more bearish. Move above is more bullish.
The EURGBP is also higher after it trended lower. The EURGBP did stall at a support level earlier today. The news makes those dip buyers at support, look pretty good. I would rather be lucky AND smart sometimes.....
