EURGBP tests the August lows

Technical Analysis

The low from August 10 at 0.89686 stalled the  fall (so far at least).

The low from August 10 at 0.89686 stalled the  fall (so far at least).

The EURGBP has has been tumbling lower over the last 5 trading hours. Over that time the price broke below a upward sloping trendline (see green numbered circles) and the swing low from last Friday at 0.8999. 

Those breaks turned buyers and the sellers and the price has run all the way down to the low price for August at 0.89686. We are seeing some stall against that level on the 1st look. But the corrective move higher has so far been very modest (up to 0.89744). A break below the lows should solicit more selling momentum. Be aware.

Looking at the pieces of the EURGBP, the EURUSD remains below its London morning high price at 1.1868. Above that level is its 100 hour moving average at 1.1879. The price currently trades at 1.18541. Meanwhile, the GBPUSD just reached a new session high price at 1.3220. The pair broke above its 100 hour moving average (currently at 1.31488) around the time of the break below the trendline on the EURGBP.   

In other words, the EURGBP move is largely influenced by the move higher in the GBPUSD. 

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