Forex technical analysis: GBPUSD follows EURUSD lower but reluctantly

Technical Analysis

Author: Greg Michalowski | gbpusd

EURGBP helps GBPUSD relatively...

The GBPUSD has moved lower alright - following the EURUSD down after the Draghi presser. However, the pair remains more supportive as the pair fights the idea that the UK is closer to the US economically.

Technically, the pair tested a support area defined by highs on Oct 9 and Oct 13. The bounce moved above the 200 hour MA (green line in the chart above) but stalled at the next corrective target against the Monday low. The subsequent fall has taken the price down to the low of the risk area at the 1.53825 level (was the high from Oct 9).  The price has stalled a bit there.  Can it hold again. Look for stops below the 1.53825.

A look at the GBPUSD should also include a look at the EURGBP as well today as the tail is waggin the dog a bit.

Looking at the daily chart, the price has tumbled lower as the EUR gets clobbered. The move lower has taken the price below the 200 hour MA at the 0.7255 level. The next key target comes in at the 0.72125 level. The 100 day MA AND the 50% of the mvoe up from the July low are centered at that level.  The combination will make that level a nice juicy level for traders to lean against on the first test.  Look for buyers on dips....just because risk can be defined and limited against it.

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