New lows. Testing the 200 month MA at 0.7370

The EURGBP is trading a new lows going back to 2008 and in the process testing the 200 month moving average. That level comes in at the 0.73707 level. The low for the day 0.73707. A break below and staying below this moving average should solicit stops with the next major target being 0.72546 off the monthly chart (61.8% retracement of the move up from the 2000 year low). At the moment, the price is finding dip buyers, but the pair remains on the knifes edge.

The EURUSD after rising to new week highs on the back of the weaker US data, could not sustain the momentum and fell back into the meat of the weeks trading range. Meanwhile, the GBPUSD has been able to remain supported.