The rally stalls. EURGBP hits support.
The GBPUSD has been rushing higher with an assist to the EURGBP which has been rushing lower. The GBPUSD broke above a topside trend line at the 1.3248 AND the 38.2% of the move down from the post-Brexit corrective high price (at 1.3979 from June 24). That was bullish.
The move higher was helped by a tumble in the EURGBP below the 0.8500 level. That fall stalled at a low of 0.8484 just above the 200 bar MA on the 4-hour chart at 0.8478 and just below the 50% of the move up from the July 14 low (trades now at 0.8497).
The rise off the low has helped push the GBPUSD back below the 1.3245/48 area. The dance between the two pairs continues.
In both pairs, there are still some key areas to eye, but the dog seems to be wagging the tail (or is it the tail wagging the dog?). Be aware of the key tech levels. They should help out.
Meanwhile back at the EURUSD, the EURUSD is testing swing lows from August 15/16 and the 38.2% of the move up from the August low. If support holds there, it may too support EURGBP (or EURGBP supports EURUSD).
