Price breaks above the 200-hour MA sees buyers take control in the near-term
It's a quiet day in European trading so far with most major pairs maintaining their trading ranges from Asia with very little movement in between.
Sterling quietly moved lower on the day, as EUR/GBP buyers find a way to take it above the 200-hour MA which has stalled the upside move so far. As Mike pointed out here, there's bids sitting at 0.8770 which provided buyers the platform to take it higher as well - possibly month-end demand related (may not be entirely, but surely part of it).
This gives buyers some control back in the pair, but what are the next levels to look out for?
Going back to the daily chart, it's the 50.0 retracement level at 0.8810 which is the next level for buyers to break through. But more importantly, they will have to get through the convergence area between the 100 and 200-day MAs sitting around the 0.8850 level in order to find the next leg higher.
Also to note, that same area around 0.8850 is where sellers are lining up with larger offers as per Mike's order post earlier. So, that will be a resistance level to watch out for on the way up.
