Forex Trading: GBP/USD Moves Higher On The Back Of Further EUR/GBP Pressure

The GBP/USD has moved to new highs on the day - moving back above the 200 hour moving average.

As mentioned in the morning commentary, the GBP/USD came under pressure earlier today on the back of the weaker home data released earlier today.  The pair moved down to the 100 hour moving average where it bounced.  Since then the EUR/GBP has come under additional pressure and this has buoyed the GBP/USD higher.

Now the pair looks as if it wants to break higher from the non-trending consolidating range that has strangled the pair and kept it near the lows.

Markets that don’t trend, will eventually trend.  The successful test of the 100 hour MA and move back above the 200 hour MA should give the market some support.  As a result, the bias returns to the upside with an initial test of 1.5000 and possible move higher from there, in the cards.  The bias is reversed if the price moves back below the 200 hour moving average.

Posted in Categories: Contributor, Eurozone, External Research, Forex, UK, USA.

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