EURGBP checking off downside targets

Technical Analysis

Author: Greg Michalowski | eurgbp

Falls below the 200 hour MA

The EURGBP is in play today. The pair has been checking off downside targets on it's move lower.

Falls below the 200 hour MA

  • The pair fell below a lower channel trend line at 0.9163
  • The next target was an upward sloping trend line and 38.2% retracement at 0.91358 and 0.91284
  • The most recent target broken has been the 200 hour MA (green line currently at 0.91186
Stay below the 200 hour MA and traders will be gunning for the 50% retracement of the September trading range at 0.90782.

A word(s) of caution....

The EURUSD has seen some quick moves which seems to lack some liquidity.  The pair cracked below both a trend line and the 200 hour MA at 1.18319 sent the pair scooting to the next target at 1.1809, where buyers entered. The price is now back above the 200 hour MA at 1.1839 currently. That break whipped "the market" good.....

EURUSD on the hourly chart
Meanwhile, the GBPUSD traded above and below its 200 hour MA as the 3 day move higher continued. The selling back below the 200 hour MA did not lead to more selling. The pair moved back above and traded to new session highs at 1.3006, but has moved back below the key 1.3000 level over the last few minutes.

GBPUSD on the hourly chart

So be careful. There are some volatile up and down moves that may be liquidity voids ahead of the FOMC decision later today.   

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