Weak GBPUSD contributing to the push higher
We know about the GBPUSD. It has been trending lower in trading today and just failed at holding the next downside target at the 1.4950 level. Meanwhile over in the EURGBP it has too taken a disliking of the GBP as it rallies higher. It is within a few pips of the triple top connecting the highs from November 16, November 24 and November 25th. Will the 4th test stall the rally once again or it it time for a break? On a break above, the 0.7088 is the 50% of the move down from the November high. Above that and traders will be looking toward 0.7107 area.
As an aside, the continued fate of the GBPUSD may also be at stake. Holding the line in the EURGBP may give the GBPUSD a cause for pause. However, let me remind traders, the GBPUSD is trending lower and breaking levels one by one. As a result, trend softly. Be sure to define and limit your risk or look for a failure (i.e. of the break below 1.4950). Right now, that is not being seen.
