EURGBP retraces the earlier run higher

Technical Analysis

Author: Greg Michalowski | eurgbp

Holding 100/200 hour MA got the ball rolling back down.

The NA session began with the EURGBP spiking higher (see post "EURUSD bounces. EURGBP in play"). 

However, as noted in the earlier post, the pair ran into the 100/200 hour MA near 0.86895.  The high price reached just short of the level at 0.86888.  As noted in the post, the pair would need to get back below the floor from last week and the 100 bar MA on the 4-hour chart at 0.8674 to increase the bearish bias. 

Holding 100/200 hour MA got the ball rolling back down.
That is what happened, and indeed the price has continued to move lower over the last 4 or so hours of trading.

Now with the low for the day being retraced and retested, traders will need to see a break of the low. If sellers can give another shove, they will start to look toward the 200 bar MA on the 4-hour chart at 0.86423 which is joined by the 38.2% of the move up from the April 5 low.

Hold support at 0.86465 and the up and down battle resumes between MAs above and the new floor at 0.86465 below.  

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