Buyers taking more control, but more work to do.
The EURGBP has been on the upswing today after trending more to the upside since peaking on June 29 at 0.91747. The low reached 0.89353 in the first hour of trading today. The price has since moved above a
- downward sloping trend line on the hourly chart,
- the 100 hour MA (currently at 0.89713) and
- more recently the 200 hour MA at 0.89987 (green line) AND
- a swing area between 0.8997 to 0.90097.
The price currently trades up at 0.90208.
Last week, the price fell below the swing area on July 7 (see red shaded area) , and found sellers near the high of that swing area at 0.9009 on the rebound before moving to the low on Friday and early today.
Moving back above the swing area, and the 200 hour MA is a bullish play for the buyers. Stay above will keep that bias in favor of the buyers.
Having said that, although the pair is trending higher today, the pair has more work to do to give the buyers more satisfaction.
The 38.2% of the move down from the June 29 high comes in at 0.90268. Getting above the 38.2% is the minimum corrective hurdle for buyers to show they are taking back some control. That level is just 4 pips from the current price level, but will be a key barometer for both buyers and sellers in the pair. Move above is more bullish. Stay below shows the correction is simple a plain vanilla retracement off the low.
Staying below the 38.2% and moving back below the 200 hour MA would not be a good sign for the bulls/buyers in the pair.
