Forex Trading: EURGBP gives the EURUSD a bid

Today the UK Construction was horrible while tomorrow the world prepares for the hike in ECB rates.  Couple that with some US dollar weakness numbers this morning and you get a pretty good move up in the EURGBP.  The catalysts?  Demand for EUROs, selling pressure in dollars and a confused predicament in the UK and US as the market tries to figure out if they should sell USD or GBP. 

The EURGBP broke above the 100 hour MA yesterday but wandered back down below the level later in the day (see chart above).  In the Asian session it was able to move back above it.  One final test held and from there the fundamentals lined up for the sharp move higher. 

The daily chart remains in a sideways triangle formation which has been forming since mid April.   This has allowed the 100 day moving average time to catch up with the upward trend in the EURGBP.  The upside resistance trendline targets the 0.8006 level.  This would be the intermediate target for the pair going forward.  It should also keep the EURUSD bid in the process.   Corrective action in the EURGBP should find good support against the 0.7940 level.