Modest bounce of swing area beteen 0.88603 and 0.88766. 50% retracement at 0.88788.
The EURGBP fell on the back of hopes for a Brexit deal, but ran into some pretty strong support in the 0.88603 to 0.88788 area (see daily chart below).
That area is home to:
- The 50% retracement of the trading range since December 2019 at 0.88788, and
- Swing highs and lows going back to March 2020 between 0.88603 and 0.88766 (see yellow area and red numbered circles)
The low for the day reached 0.88659 before bouncing higher. The price currently trades at 0.8891.
Drilling to the hourly chart below, the pair today fell below the lows from last week at 0.89139 (from Wednesday's trade) and 0.89115 (from Friday's trade).
The initial price low in the Asian session moved to 0.88729, before racing back to the upside and retesting the lows from last week (see red numbered circles 4 in the chart below). The sellers leaned against that old floor and pushed the price to a new session low, but above the low for November at 0.88603.
The technical levels to high would be the 0.8911 to 0.89139 area as resistance followed by the 38.2% retracement at 0.89186 and the falling 100 hour moving average at 0.8934 currently. On the downside, getting below the recent lows at 0.88659 and 0.88603 would be needed to swing the bias more to the downside.