EURGBP following the stock market

Gains in stock disappear. EURGBP rallies

In an earlier post, it was noted the recent moves in the EURGBP. The EURGBP had moved higher with the stock markets recent decline. Today that trend was reversed. However, as the stock market has erased its gains, it has led to a move higher in the EURGBP. The Pavlovian reaction remains in place for the pair.

Technicallly, the price tried to stay below trend line resistance on the 5 minute chart. That was broken. It is now also back above the 200 bar MA and trend line resistance. The price action is helping to tell the story. The story is still inversely related to the stock market. Stock market down, EURGBP higher. Stock market up, EURGBP lower. Next target is the 50% at 0.7339. then 0.73584 (correction retracements).