The EURGBP moved above the key 100 day MA to end the trading week on Friday. The high price extended to a swing area target between 0.8488 and 0.8494. Seller leaned and the price subsequently moved back below the broken 100 day MA.
ON Mondya, the price in the early European session and retested the 100 day MA. Sellers leaned and the price moved back lower, falling below the 100 hour MA and 200 day and 200 hour MA in the process.
Today (like on Monday), the corrective move higher stalled against the broken technical levels. This time it was the 200 day and 200 hour MAs (green lines in the chart above). Sellers leaned and extended to the next target.
Overall, the price is down 3 days in a row, and on each day, the MA levels (whether 100 or 200), acted as barometers for the bias.
What next?
The moving averages are now in the rearview mirror (i.e. above current levels). The targets are now swing areas. The 1st is between 0.8409 and 0.8414. The price fell below the low of that area and failed, but has reentered over the last few minutes of trading. A break back below 0.8409 have traders next targeting a swing area between 0.8393 and 0.83999. 0183999. Move below that level and it opens the door for further downside momentum The sellers would add to their control.
If buyers are able to hold the 0.8409 level we could see a rotation back higher with the above MA cluster between 0.8436 to 0.8443 as resistance.
