GBPUSD retraces NY range. EURUSD lags.
The vote came and went and given the resounding defeat, and vote of no-confidence, the price action is a little head scratching. "The market" can be all knowing and maybe it knows more than I do, but the technicals have turned around.
Looking at the hourly chart, the price just moved up to test the 100 day moving average of 1.2892. The price just reach 1.2888. There is a little pause as you might expect. There were also pauses at the 200 and 100 hour moving averages on the way back higher, but each pause eventually gather momentm and extended above and beyond the levels.
If the pair is going to stop here, the shorts have to suck it up and keep the buyers at bay. If shorts are offsides and stubborn, and the buyers want to inflict more pain, there could be another squeeze. It is a key level. Everyone knows it.
For the EURUSD, the pair bottomed today at the 61.8% at 1.13834 area. The buyers since the vote has taken the price to 1.1417. It remains way off the highs (EURGBP is the reason for that). The 1.1419 is the 50% midpoint of the move up from the December 14 low. A move above is needed to get more buying interest.
The EURGBP - like the GBPUSD - is testing a key daily MA. For the EURGBP, the price has moved down to test the 200 day MA at 0.88576. Back in November, the low tested that MA and bounced. This is the first revisit to the MA since that time. A move below might need help by a break above the 100 day MA.
