Moves above the 100 bar MA on the 4-hour chart
The EURGBP has moved to new session highs - taking out the highs from last week (at 0.8428) and the 100 bar MA on the 4 hour chart at 0.8439. The pair is approaching the midpoint of the move down from December 8th spike high (ECB decision day). That comes in at 0.8450. Just below that is channel topside line. That line cuts across at 0.84465.
In the individual pieces, the GBPUSD is trading near low levels for the day, while the EURUSD has been marching higher in NY trading. For the EURUSD, it is now peeking above the 50% of the days trading range at 1.0449 and also the close from Friday at 1.0446. (trades up to 1.0449). We will see if the momentum can continue.
The GBPUSD is reaching a support zone defined by a number of swing levels (between 1.2350-79 area - see yellow area in the chart below). The low for the day has reached 1.23589.
With the EURUSD near unchanged and the 50%, the GBPUSD near a key support area and the EURGBP near a resistance area, the combination should stall the moves with stops on breaks.
