Falls below 100 and 200 hour MA too
The EURGBP has been breakin lower in trading today. Like the EURUSD, the par reached another extreme yesterday but started to reverse lower. Looking at the 4-hour chart below, the price failed on the a break above a topside trend line.
From that failure, the pair started to crack lower trend lines. The fall below the blue trend line went back to July 21 (not shown). It was broken last week and buyers leaned against it on corrective moves last week. Today, the buyers ultimately turned to sellers below that line. That blue trend line cuts across at 0.9228 currently.
What next?
The pair on the hourly chart has another trend line at the 0.9187 level as a lower target. Below that the 0.9144-54 has swing levels AND the 100 bar MA on the 4-hour chart. The price has not traded below that MA since July 18th (not shown).
Looking at the hourly chart below you get a view of the price action with the 100 and 200 hour MAs included (blue and green lines).
The fall today saw the price stall around the 100 hour MA, but eventually did find sellers against the MA line (see blue line at 0.9244).
More recently, the price has moved below the 200 hour MA at 0.92074 (green line). Staying below that MA would keep seller firmly in control. A move above does not ruin the bearish break party completely, but it may lead to retracement back up to the broken trend line above.
SUMMARY: The bullish bias started to unravel in the EURGBP. Sellers started to take back some control yesterday and continued that trend with breaks below trend lines and the 100 and 200 hour MAs today. There is more trend line support below, as well as the 100 bar MA on the 4-hour chart (and swing levels) at 0.91455.
