It is helping to support the GBPUSD
The EURGBP is trading near session lows and in the process are looking to test a swing area from the last month of trading (see -4-hour chart below). That area comes in at 0.9142-54. The low just bottomed at 0.9155. A move below that area would solicit more selling. Targets on a break come in at 0.9100 and 0.9091. The 200 bar MA on the 4-hour comes in at 0.90814 and moving higher.
The fall has taken the price below the 100 bar MA on the 4-hour chart (blue line on the chart above). At the end of last week, the price fell below that MA (US unemployment Friday). That was the first break below since July 18th (see blue line in the chart above). That break did not last long. Yesterday, the pair moved above the MA line on the first bar and stayed above it.
Today we are seeing the resumption of the selling from Friday.
Drilling down to the hourly chart, the 200 hour MA stalled the rallies on Friday and again during Monday's trading (green line on the chart below). Today, the 100 hour MA (blue line in the chart below) was broken and that seemed to turn the bias back to the downside for the pair. That MA is a risk level for shorts now. Stay below is more bearish. Move above and the water gets more muddy (with the 200 hour MA eyed - green line in chart below).
The EURGBP action is helping to keep the GBPUSD supported. The pair remains up near resistance at the 1.2981-88 area (see earlier post). If the EURGBP remains under pressure, it seems that tail is wagging the GBPUSD dog (i.e EURGBP moves lower, GBPUSD will go higher).
Factory orders are up next at 10 AM ET/ 1400 GMT. The estimate is for a large decline of -3.3% after a -3.0% fall last month.
Read Again Forex technical analysis: EURGBP at lows : http://ift.tt/2iZLWcEBagikan Berita Ini
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