Key test for the pair
As the EURUSD tumbled on the Draghi comments, the EURGBP also fell sharply. The pair moved below the 100 hour moving average at the 0.76647 level. But found support against a trend line going back to January 6 (see chart below). The price is now bouncing back above the 100 hour MA (as I type) in volatile trading as the EURUSD also bounces and trades at 1.0813. Markets remain choppy and volatile. The 0.7693 level should put a lid on a rally. Traders who want lower, will need to see the 100 hour MA broken and stay broken. Failure to do so, will put doubt in the minds of the EUR sellers.
