Surge higher keeps the EURUSD bid and the GBPUSD offered
The EURGBP has been a big trend mover today as better German fundamentals (IFO survey data) /weaker UK fundamentals (Carney and CBI reported sales) gave traders the go ahead to push higher.
Technically, looking at the hourly chart, the pair moved back above the 200 hour moving average (at 0.7028) with momentum (green line in the chart above), and that was a shove traders needed to get the bullish ball rolling. Since November 9, the EURGBP has traded below the 200 hour MA for most of the month.
The pairs has moved above the 38.2% of the move down from the November high at the 0.70626 level and tested the swing high at the 0.7078 level (that is the high). The 0.7088 is the 50% midpoint of the November move lower.
With the 0.7078 level holding for the time being, the focus will turn to the correction off the high. The 0.70626 is support as is the 38.2-50% of the last trend leg higher in the pair. The EURGBP has had two trend legs higher (see 5- minute chart below). The first held the 50% on the correction. This one has the 0.70559-612 as the 38.2-50% correction zone. Stay above and the buyers remain in control. The trend is still on. Move below and the momentum fades a bit. That area is being tested as I type.....