Tail waggin the EURUSD dog
The EURGBP has surged to new session highs and highs going back to October 22nd. It is testing the 61.8% of the move down from the October high to the November low. The last week has seen the price move above and stay above the 100 and 200 day MAs (blue and green lines in the chart below). Today the price based against that level and has been moving higher since then.
Looking at the 5 in the chart below, the price has trended nicely higher the support now comes in against the 0.7273 – 788 area. This is the 38.2 – 50% retracement area of the last trend leg higher. Stay above and the buyers remain in control. Move below and the trend move may have exhausted itself.
Meanwhile, over in the EURUSD, the pair is extending above the 200 day moving average at the 1.1031 level 100 day moving average at the 1.1060 level. Another key level for the pair.
