Forex technical analysis: EURGBPs wild ride....

Break to highest level since election to new month lows

The EURGBP broke to new highs for the year. Highest level since the November US election day. Things were looking so bullish on Tuesday.

By Wednesday, that spike higher was reversed and the price fell and fell more and fell even more.

Today we have taken out the double bottom for the month at the 0.8756 area (close risk now). The low reached 0.8742.

We are currently recovering and trading a few pips above the 0.8756 level as I type.

It has been a wild ride over the last 7 or so days, and the week is coming to an end. The low got close to the next targets at mid June lows. The market has to take a breather sometime and I would expect those levels make sense.

Next week, the engine can be restarted and traders will decide if the lows are the floor, and we move back higher.

PS. The EURGBP move lower has been helped (or has helped) by the action in the GBPUSD. That pair is breaking out today (above 1.3047). Keep an eye on that level for clues in the EURGBP.

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