Back down testing the 100 and 200 day moving averages
The market has been having an on again/off again relationship with the EURGBP recently.
Yesterday, the pair moved lower after failing to extend to new highs for the week. However, the 100 hour moving average and 50% retracement of the weeks trading range held support (blue line chart below) and we saw a steep run up into the close. The move helped to propel the EURUSD above the 1.1000 level and to a high price of 1.1042.
Today, the pair was pressured from the start and moved below the 100 hour moving average (blue line in the chart above) for the 1st time since December 1.
However, the 100 and 200 day moving average at the 0.7199 – 0.7204 area stalled the fall.
Since then, the pair has traded back higher but then back down again. Currently, it is scraping against the 100 day moving average (blue step overlay line). The pair has 6 hourly bars today near the 100 day MA, but no closes.
So technically, traders are looking for the next push. Either we move below the 0.7200 area (100 day/200 day MAs) and continue on down toward the 200 hour moving average (green line in the chart above) at the 0.7159 level, OR we move back above the 100 hour moving average at 0.7226 and take another look at the highs near 0.7278.
Which way will the push come from?