The EURGBP moved lower in the European session, continuing the fall started on Friday. The move lower saw the pair move below a downward sloping trend line connecting recent lows on the hourly chart (see green numbered circles). However, the low did stall within a swing area going back to mid-December in the 0.8765 to 0.87714 area. The low reached 0.8768 before bouncing back higher.
The move to the upside has seen the price move up to retest the 100 hour MA at 0.8814. A move above that level would have traders looking toward the 200 hour MA at 0.88279.
On Friday, the pairs moves below both the 200 and 100 hour MAs with momentum, saw buyers turn to sellers.
BOEs Pill is on the wires speaking more hawkish.
- Distinctive domestic factors could make UK inflation more persistent
- NO single smoking gun that could be identified as the key indicator of driver of inflation persistence
The GBPUSD is moving to a new high. The EURGBP is so far staying steady as the EURUSD is also stretching higher as well.
