The 100 hour MA has been a ceiling over the last 4 trading days
The EURGBP is trading near unchanged levels ahead of programme motion later today. The price is trading near the lows going back to early May (the price is currently at 0.8600).
The pair remains above the recent October lows that came in at 0.85739 and 0.8577 (lows from last week and Monday), but below the 100 hour MA (blue line) currently at 0.86259. The last 4 days has seen a number of tests of that moving average line, only to find sellers against the line.
Those levels represent
- Close support at the floor (at the 0.85739-77) and
- Close resistance at the 100 hour MA at 0.86259
Traders will be looking for a break, with stops on the news.
On a move lower (a success in the votes for PM Johnson) would have pair eyeing the lows for the year that come in at the 0.84714 to 0.8487 (see red numbered circles from the daily chart below). Needless to say we are still a ways away from those levels but they will be the focus on traders.
On the topside from the daily chart, a run higher would have traders eyeing the 0.8681-96 area (see green numbered circles). From the hourly chart, the 200 hour MA comes in at 0.86907 which is between the area on the daily chart.
Above that level and the traders will be eying the 38.2% of the move down from the October 10 high that comes in at 0.8743 and the 50% at 0.8796 (see hourly chart above).
For now the pair coils and waits for the games to begin in the UK Parliament.