Tests the 50% of the move down from Novmber 30th
While the EURUSD moved to new session highs, so too is the EURGBP.
It currently trades at the 50% of the move down from last week's high at the 0.84406 (the high reached 0.8441 - see the chart above) . The 100 hour MA looms ahead at the 0.8449 level. There should be some profit taking against the area with stops on a break above.
The low today at 0.83039 was the lowest level since July 15. but the pair did hold a lower trend line connecting the low from Nov 15 and November 21.
The EURGBP on Thursday moved lower and back higher (nearly completed a lap of the move down). On Friday, it was back down for the pair on referendum fear. Today, the pair is back up after the fall stalled and market traders shrugged off the referendum vote. Will the resistance against the 50%/ the 100 hour MA hold resistance? It should but expect more upside momentum on a break higher as traders lean against the level. ON a move back lower, a move below the 0.8400-08 area would be eyed as a more bearish clue.
