200 and 100 hour MA above. Swing area and trend line below
The EURGBP traded to the lowest level since February 27, 2020 today, taking out the low for the year at 0.8537 on the way to the new low at 0.8532. A break of a low should be bearish, but it was only by 5 pips. That is not empowering for the sellers.
Drilling to the hourly chart below, at the low, the there was testing a lower trendline connecting the lows for this week. The combination of not moving far after the break and finding support on the hourly chart at a lower trend line, gave dip buyers a few reasons to put a toe in the water.
The price has moved higher and moved above a swing area between 0.8547 and 0.85556 (see blue numbered circles). There have been a number of swing levels in that area since March 9. The high price reached up to retest the 200 hour moving average at 0.8571. The high stalled and has moved back down to test the swing area.
So dip buyers are making a play, but sellers against the MA are putting up a fight.
At some point, there will be a winner. A break of the lower swing area now, would still have the lows (including the old low for the year at 0.8537) to get below and stay below. A break of the 200 hour MA, would have the 100 hour MA and topside trend line to get to and through on the hourly chart, and then the midpoint of the weeks trading range at 0.85857. Those are minimum targets to get to and through if they are to take more control.
Right now, the buyers are trying to hold support. Key test, but low risk level for dip buyers.