EURGBP wrecks some havoc with the EURUSD/GBPUSD
The tail is waggin the dog today
The EURGBP is wreckin some havoc with the EURUSD and GBPUSD today.
Earlier the EURGBP shot higher. The EURUSD moved higher. The GBPUSD moved lower.
Now as London traders look toward the last few hours of trading, the EURGBP is moving back lower. The EURUSD moved down to test its 100 hour MA, while the GBPUSD moved to the 200 hour MA and now above.
The tail (i.e. the EURGBP) is waggin the dog (the EURUSD and GBPUSD) today.
Looking at the EURGBP, the low today stalled at a lower trend line on the hourly chart. That trend line currently comes in at 0.8735. ON the run higher, the pair moved to test the 38.2% of the move down from the Jan 10 high (high for 2019). That comes in at 0.8785. The high reached 0.8792 (belowt the 100 bar MA on the 4-hour at 0.8799 and the natural 0.8800 level).
The fall has taken the price back down toward the lower trend line.
Looking at the EURUSD, the price has seen ups and downs. The recent fall in the EURGBP, took the EURUSD down with it, but the 100 hour MA has held support....
For the GBPUSD, the 200 hour MA stalled the rally at first, but the EURGBPs fall led to traders buying the GBPUSD too. The price is back below the MA line now.
Occasionally, the tail will wag the dog with crosses. The price action can wreck havoc with the main currency pairs as a result. That seems to be the story today as the EURGBP runs one way and then then other. Traders scramble along with the up and down volatility.