Yesterday was the 1st close below since December 2015
Yesterday the EURGBP broke below the 200 day MA for the 1st time since December 2015 (yes 2015). That is significant for the bears. The price should go lower. Indeed the price did go lower in trading today. The low reached 0.8402.
However, the pair started to rebound in the London session. The pair moved back to unchanged on the day. It started to move lower as the EURUSD was moving to it's lows. Then the France election news pushed the EURUSD higher and with it the other EUR pairs including the EURGBP.
The price rise has taken the pair back to the 200 day MA at 0.8464 (the high reached 0.8467).
The gains are being maintained but there is some reluctance. After all, it was the first close below the MA since 2015.
That level is in play. The sellers we are seeing now are likely leaning against the MA. They are hoping that the price remains below and the downside reasserts itself in the price action. However, I gotta think that if the price moves back above the MA, the sellers leaning now, are likely to become buyers and the trade idea will be over.
It will also be a big failed break for the pair.
