The GBPUSD has been moving lower in trading today, after testing topside resistance area at the 1.5734-40 area (there was small failures above this area over the last 3 trading days – see red areas). The move lower pushed the price below the 100 and 200 hour MA. In the NY session, the price has been holding below that 200 hour MA (green line), keeping the bears/sellers in control.
The GBPUSD is testing the lower support area at the 1.5618-28
Currently, the price is testing the low floor area at the 1.5818-28 area (breaking now – see lower yellow area). The bias remains lower below this level. Traders will be eyeing this area for any signs of failure, however. It just goes with the types of markets we are in. So be aware for a bounce back rally.
Meanwhile, the EURUSD is not doing much as it remains above the 100 hour MA at the 1.24189 currently.
The EURGBP is consequently higher in trading today and exerting an influence on the EURUSD and the GBPUSD (the tail is wagging the dog) The pair tested the 100 hour MA (blue line in the chart below) in earlier London trading and held the support. That gave buyers the go ahead to buy – from a technical perspective.
EURGBP is moving higher after testing the 100 hour MA earlier.