EURGBP keeping a lid on the pair
The GBPUSD is not following the dollars weakness in NA trading. The pair is in fact testing session lows as the US stock market opens down for the 3rd straight day (S&P down -16.5).
The price action has been up and down today - moving above and below the 200 hour MA (green line in the chart above at the 1.44309). The 50% of the corrective move higher from the Jan lows comes in at 1.4372 (next target). There are other support levels between 1.4351 and 1.4366 where there are a number of swing lows/highs going back to Jan 12 (see blue circles). There is simply a lot of traffic ahead on the downside.
The pair is being influenced by the action in the EURGBP. That has been rising again today but just tested the 50% of the move down from the July 2013 high. that level comes in at 0.78508. The high just printed 0.7850. Key line in the sand which should provide some pretty good resistance on the first test (and indeed the price has already quickly retraced 25 pips from that level). If the tail wags the dog (i.e., if the EURGBP is influencing GBPUSD and EURUSD), that level may be a catalyst for moves. So keep an eye on it.
