By: Greg Michalowski
The EURGBP support level (see prior post) gave way (at 0.8036) and with it the GBPUSD moved sharply higher (or was it GBPUSD moving higher which pushed the EURGBP lower?). Regardless the price is trading at the highest level since June 21. The range for the pair is a modest 71 pips with a 20 day average at 124 pips. So there exists room for an extension. Activity has been choppy for most of the day (see chart below). The current move higher will be eyed to see if the trend like move can be sustained without the choppiness (and frustration) of the preceeeding intraday moves. With more distrust in the market, I would expect that longs may not be so patient with corrections. If the price is to move higher and extend, risk might only be given to the 1.56884 (38.2% retracement).
The EURGBP support level (see prior post) gave way (at 0.8036) and with it the GBPUSD moved sharply higher (or was it GBPUSD moving higher which pushed the EURGBP lower?). Regardless the price is trading at the highest level since June 21. The range for the pair is a modest 71 pips with a 20 day average at 124 pips. So there exists room for an extension. Activity has been choppy for most of the day (see chart below). The current move higher will be eyed to see if the trend like move can be sustained without the choppiness (and frustration) of the preceeeding intraday moves. With more distrust in the market, I would expect that longs may not be so patient with corrections. If the price is to move higher and extend, risk might only be given to the 1.56884 (38.2% retracement).
