Traders test target
The EURGBP has continued to the move to the downside helped by a break of the 200 hour MA (first since the Brexit run up). The pair is also now trading below the next target at the 38.2% of the move up from the corrective low on the Brexit Friday. That level comes in at 0.8378. The level is also near the Monday and Thursday after Brexit highs. There was a lot of congestion around this area. We are trading below that level now as traders exit positions in the pair.
The action is impacting the EURUSD and the GBPUSD (of course). The EURUSD is trading below the 100 hour MA at hte 1.1068 now. The GBPUSD has traded above 1.3220. If you overlay a fibonacci from the corrective high on the Brexit day to the July 6 low, the 38.2% come in at 1.3245. That is the next target for that pair. It also corresponds with lows from July 1, July 4 and July 5th (see chart below).
