Trend line and 200 bar MA on the 4-hour chart
The EURGBP has been trading up an down today after trending higher on Monday and again yesterday. The GBP's sharp decline has been the main catalyst for the run higher. However, the pair is approaching the next key targetss and that is helping to slow the rise.
Technically, looking at the 4 hour chart above, the EURGBP is approaching a topside trend line at the 0.8520 level. Just above that level is the pairs 200 hour moving average at 0.85238. The earlier high for the day reached up to 0.85167. We currently trade at 0.8508.
Are sellers able to keep a lid on the pair against this dual resistance level?
That is the risk level for sellers looking for a continued slowing of the trend and possible correction lower. A move above with momentum would likely lead to more buying. Until then, although the sellers are not exactly making much traction to the downside today (the low today is only to 0.84823), the sellers should look to keep a lid on the pair.