Off lows but...
The EURGBP has moved about 190 pips from the highs this week. That is about a 2.45% decline. Not bad. As outlined last week, the pair did move below neckline support and the 100 day MA. Yes, there was a correction at the end of last week, but the trend restarted this week with the better Brexit talk.
The pair does move closer to the 50% of the move up from the November 2015 low that level comes in at 0.7548. The low today extended to 0.7564. The 200 day MA is at 0.75168. That corresponds with the lows from late January and early February. That area should be very strong support. I would expect buyers lining up.
We are coming to end of the month when typically there is more interest in EURGBP from central bank interest. Was the low today, the low for the month? If it is a move above the 0.7600 will help confirm more upside.
If it was not, look for the 50% and or 200 day MA to put a floor in.
A catalyst for the move may be EURUSD which is still stalling at the 100 day MA.
