Forex technical analysis: EURGBP resets a ceiling at the 100 hour MA
Below 50% of years range too
The EURGBP is moving lower and trades near session lows. The pair did rally into the London morning session but stalled just ahead of the 100 hour MA (blue line in the chart below). That is a bearish play and sellers took control.
The price in the NY session was helped in part by a rally in the GBPUSD on the back of comments about Brexit plans from PM May (click here).
In addition to holding the 100 hour MA, the price has moved below the 50% retracement of the 2017 trading range. That level comes in at 0.88079. The last 5 hourly bars have closed back below that level. Stay below keeps the bears in control Move above and there is more of a battle going on. That level is close risk level for shorts now. A more conservative risk level is up at the 100 hour MA at 0.8835 currently. Be aware.
On the downside, the low from Friday and Monday at 0.8773-77 are the next obvious targets to get to and through. Below that, and the pair will be looking toward the 0.87425 low from July. Below that, the 200 day MA (green line in chart below) and trend line near 0.8711 will be an important level for traders. The price has not been below that MA since May.