While the GBPUSD trades to a new session low of 1.2009 and looks toward the natural support at 1.2000, the EURGBP is not immune from the GBP weakness.
The EURGBP has moved sharply higher today. The low to high range is 130 pips. That is well above the 66 pip average seen over the last 22 trading days.
Looking at the daily chart, the pair moved above a swing area between 0.8594 and 0.86186 earlier in the session. That gave the buyers the go ahead 2 push higher and in the they increased the upside momentum. More recently, the price has moved above another swing area between 0.8657 and 0.8670 and is currently testing a topside downward sloping trendline on the daily chart at 0.8681.
Move above 0.8681 it opens the door for a move toward the 38.2% retracement of the move down from the 2020 high that level comes in at 0.86971. Above that and a another swing area between 0.87106 and 0.87303 would be targeted.
Conversely, if the trendline can now hold resistance, traders would be looking toward the aforementioned swing area between 0.8657 and 0.8670 as close support. Move below that level, however, and there could be further corrective downside probing after the sharp move higher today.
So the GBPUSD is approaching a key support and the EURGBP is approaching key resistance. Will the sellers of the GBP in those pair, take some profit? Conversely, will the sellers continue their assault on the pound? The technicals will continue to tell the story.
