EURGBP swings higher into the fixing

Technical Analysis

Author: Greg Michalowski | eurgbp

Pushes EURUSD back higher.  GBPUSD stays near lows

It is a quiet day, and sometimes the trading can be influenced by swings in a cross pair.

The EURGBP went on a run higher into the London fixing. Technically, the pair moved above a trend line on the hourly at 0.8870.  It also moved back above, and away from the 100 and 200 day MAs at 0.88507 and 0.88617 respectively.  The price had been waffling above and below that MA over the last 24 hours of trading.  The low today did also stall at the 100 hour MA (blue line at 0.88432).  All is bullish and helped push higher. 

The move helped to swing the EURUSD higher after trying the downside in the early NY hours (see earlier post).   

The pairs rebound off the low, was able to get back above the 50% of the move up from last Friday's low, but stalled initially at the 100 and 200 bar MA on the 5-minute chart. However the 50% became a support level, and that hold, coupled with the EURGBPs move higher, helped push the EURUSD price back above the intraday moving average levels (blue and green lines in the EURUSD chart below).  The ups and downs continue in that pair, but the 200 bar MA and 100 bar MA are now support (if you choose to enter the waters). 

For the GBPUSD, the price remains below its intraday 100 and 200 bar MAs and the broken trend line (see chart below).

The EURGBP made a move and in the quiet of the trading day, has dragged the EURUSD and the GBPUSD along for the ride.