Forex technical analysis: EURGBP at cross road (again)
Swing level (up to 0.8879) tested.
The EURGBP has been trading in a 164 pip trading range since breaking higher on June 9th election day surprise. The swing highs over the last month or so has peaked at 0.8865 on June 12th, 08879 on June 28th and on Friday and today the highs reached 0.8859 and 0.8858 respectively. Going back in time, the high in January reached 0.88509. There were other swing highs and lows between 0.88509 and 0.8879 (see red circle 1-3 in the chart below).
Sticking to the daily chart above, the lows from June 15th stalled very near the 50% of the move down from the October 2016 high to the December 2016 low at 0.8724 (that low was retested in April 2017). That is more bullish, but let's face it, the pair has a lots of ups and downs at the highs and against the swing levels.
Drilling down to the most recent price action on the hourly chart below, the 0.8858-60 area has 4 separate tests over the last two days (see 4-5,6 7 red circles in the chart below). That area was also a stall point in the past (going back to June 9). That level is a close level on the topside to get above. On the downside, the 0.8832-34 area has been home to a number of lows over the last few days. That battle rages in the near term as the longer term battle tries to keep a lid on the pair at the same time. We are at a key cross road for the pair.
In summary: The EURGBP is at a key cross road. The pair is banging against some key topside resistance on the daily chart between 0.8850 and 0.8879. That goes back 10 or so months. Closer in, the pair is banging against a ceiling at the 0.8858 area and a floor at the 0.8834 area. The pair remains near high levels...yes... but there is work to do for the bulls to open up the upside, and that apple cart can wobble. A move below the 0.8832-34 could cause more apples to fall out of the cart. Be aware.