Buyers in control
The EURGBP is pushing higher in the last few minutes of trading, and in the process is testing the highs for the day at the 0.8675. A move above that level will have traders eyeing the August high of 0.87237 reached on August 16th. A break of that would be 3 year highs for the pair (last traded on August 7, 2013).
Looking at the hourly chart, the move higher today not only got a push when the trend line on the daily chart above held support, but also from the failure on the dip below the 100 hour MA (blue line in the chart below). That break should of solicited more selling momentum. When it failed, the sellers leaned against the 100 hour MA, and the rest is history. On that chart a break above the high will have additional resistance not far away at the 0.8684 level. This is a topside trend line that connects the recent highs (see chart below)
What is the move doing to the EURUSD and the GBPUSD?
The GBPUSD is seeing more selling over the last hour or so. The price of that pair has moved from a high of 1.2974 to a low of 1.2950. There should be support at 1.2944.
The EURUSD did see a move and extension to a high of 1.1240, but momentum has faded despite the move higher in the EURGBP.
