100 hour MA eyed as support now.
Earlier in the day, the EURGBP was pushing higher but into resistance (CLICK HERE FOR THE POST). The pair was testing the 50% and a topside channel trend line in the 0.8449 area. Moreover, the EURUSD had moved back toward the Friday close/50% and the GBPUSD was near some key support in the 1..2350-79 area.
The EURGBP resistance held, the EURUSD rally slowed and reversed, and the GBPUSD's fall stalled. All the pieces reacted.
What next for the EURGBP?
The EURGBP has reversed and moved back below the 200 hour MA at 0.84078 (that is now resistance), but above the 100 hour MA at 0.8386 (which is now support). A battle is on.
Taking a step back and looking at the price action:
- We made a break higher - taking out the highs from last week.
- That break ran into resistance (50% and trend line) and fell back down.
- The market was not ready to go higher.
Do we now go lower?
Ehhhhh...For sellers from above, you have the 200 hour MA to lean against....Go above and bulls back in control.
However, we are back in the middle of the up and down range from last week. We can easily restart that up and down trading.
So eye support at the 100 hour MA. If we hold, look for the rotation higher. ON a break of the 100 hour MA, the 0.8317 (trend line) and then 0.8357-618 (old swing levels - see chart above) will be the next targets. Each should give traders cause for pause on tests.