The 200 hour MA and 50% is being tested
The EURGBP has surged on the dovish BOE, but the pair is approaching a key resistance area against the 50% retracement of the move down from the October 28 high along with the 200 hour moving average (green line in the chart below). Those levels come in at 0.7145 and 0.7152, respectively. the area also corresponds with higher lows and highs going back to October 28/29 The price high today comes in at 0.71488 currently.
I would expect this area to attract sellers on the 1st look as profit takers lean against the level. The close support on a correction, would come in at the 0.7128 level. This is the midpoint of the last leg higher in the pair. The 100 hour MA below at the 0.71139 level (blue line in the chart above), will also be a potential correction level.
The action in this pair has been dominated by the sharp sell off in the GBPUSD today. The EURUSD has helped a little as well as it is up a little since the BOE decision. That helps the EURGBP move higher of course, but most of the catalyst is coming from the GBPUSD tumble.
