Near 50% retracement as well.
The EURGBP trended to the downside and the London session after failing on the break of last week's high. The fall to the downside, initially took the price back below its
- 100 hour moving average (blue line) currently at 0.90779,
- a lower upward sloping trendline at 0.9073, and
- The 38.2% retracement at 0.90600.
From there the next stop was the 50% retracement of the move up from the July 13 low at 0.90362 and its 200 hour moving average (green line currently at 0.90316).
The New York early session low stalled right at the 200 hour moving average and bounced modestly back toward the swing lows from last Thursday and Friday near 0.9055 (see green numbered circles). Over the last few hours the price has move back to the downside after that test stalled the rally.
The price is currently back down retesting that 200 hour moving average/50% retracement area between 0.90316 and 0.90362. A move below that level - and staying below - will have traders next looking toward the 61.8% retracement and swing high going back to July 8 and the 0.9009 – 0.9012 area.
Hold support and the ping-ponging between the 0.9055 and 0.90316 and continue until there is a break and run.
