EURGBP falls below swing area on the daily at 0.8675 to 0.87017
The EURGBP fell to the lowest level going back to March 2020. Looking at the daily chart, the price fell below a swing area going back to March -May 2020 between 0.8675 to 0.87017. That area was tested yesterday, and broken today. Going forward, it will take a move back above that area to give buyers some satisfaction on the failed break.
Drilling to the hourly chart below, the fall below the aforementioned swing area sent the pair down to test a lower channel trend line. That trend line cut across at 0.86417. The low price moved to 0.80406 and found buyers/profit takers.
Although the price has rotated higher, the move to the upside has been limited. Looking at the 5 minute chart, the price corrected up to test the 38.2% of the days trading range at 0.86631.That level also corresponded with falling 100 bar MA (blue line).
The price subsequently moved above that moving average during three 5-minute bars, the rise was short lived and the price has stepped lower (at a more modest pace).
It will now take a move above that 100 bar MA currently at 0.86538 and the 38.2% at 0.86631 to increase the bullish bias (and give buyers more comfort). Until then, the sellers remain in more control. The buyers are hoping the lows for the day hold support. If not, the sellers are still in firm control, and the we should see more downside momentum.
