Meanwhile over in the EURUSD....
The EURUSD fell in sympathy with the GBPUSD tumble but the pair was largely a bystander watching as EURGBP moved higher limiting the fall in this pair.
When the GBPUSD started to correct, so did the EURUSD as it bounced from a low of 1.1113 to a high of 1.1147. The move to the low did go below the 38.2% of the move-up from the July 25 low, to the high reached on Tuesday (that high did stall at the 100 day MA) and also the swing high from last Thursday at the 1.1118. Those breaks were short lived.
The rally higher has been able to keep a safe distance away from the 1.1153-59 area. Stay below and the sellers are holding on with hope that the technical targets might be taken out below. Having said that the pair has barely gotten below the 38.2% and the 200 hour MA (green line in the chart below) has not been tested (at 1.1100). As a result, the selling comfort, can't be too great and you can even say the pair remains supported.
Looking at the 5-minute chart, the correction off the low has taken the price above the 100 and 200 bar MA but activity remains choppy at the highs. If the sellers want to take back more control, they need to get below these intraday MA and stay below.
