EUR/GBP Pushes GBP/USD Up Over The Top

A fall in the EURGBP below support has helped  push the GBPUSD above resistance at the 1.6349 level. The EURGBP has been trending higher since September 11th.  Over the last few days there has been a floor developing at the 0.9039 level (see chart above).

There also has been good resistance at the 61.8% retracement of the move down from the March 18th high to the low reached in June. That level comes in at the 0.9077 level.  The high today reached 0.9080 before heading back down (see daily chart above).

With the EURGBP price moving below the 0.9039 level, it has pushed the GBPUSD above resistance at 1.6249 level (key 100 hour MA - see prior post) . The high has extended up to the 1.6365 level which corresponds with the next resistance area for that pair at the 38.2% retracement level.  Look for support at the 1.6340-48 level now.  If the price can hold the level and EURGBP can continue to correct lower below 0.9039, a move to new highs is likely for the GBPUSD.

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