Trades at the lowest level since July 29
The EURGBP has moved sharply lower in reaction to the Merkel comments, and in the process has cracked below the July 31 swing low the August 16 swing low (and a swing high going back to July 29). That area comes in at 0.9084 to 0.9089. Stay below that swing level is now risk for shorts.
Earlier today, the price action off of the better European PMI, helped to sent the price above a top side trendline (see green numbers circles). However, the momentum faded just before the broken 38.2% retracement level at 0.91584. The price moved back below the trend line and its 100 hour moving average at 0.91346, and helped sour the mood for buyers. Lucky sellers pn the failed break today, got the kick lower off Merkel's comments.
The next major target on more weakness comes in at the 0.9004 level (call it 0.9000). The low today reached 0.90393 so far.
