Market Psychology...

Behind price action: EUR.GBP Cross

Draghi's hawkish tone

As the Bank of England declined to add more to its stimulus package; the statements made by Mario Draghi of the ECB has turned the Euro from an obvious lower trend bias into a round about turn moving higher.

The initial price action remains to have ignited a EURUSD price swing from 1.2950/65 low to its current working price @1.3105; nearly touching its 14day-EMA and nearing its 1.3175/80 resistance price levels. The quick reaction sent most technicians referring to their charts pointing at the next resistance price level which spilled-over to the EURGBP cross that moved at least close to an 80pip range for the current trading session. And have marked an 0.8714 high coming from the low @0.8587-0.8610 range the past few trading sessions before the current price swing higher @0.8705/10.