The EURGBP has been on a move to the upside over the last 5 trading days with the pair moving up from a low on Monday of 0.84217 (see daily chart above).
The high price today reached up to 0.86694. That high stalled right near the top of a swing area between 0.8657 and 0.86701. The area was a ceiling going back to May 2021, July 2021, and September 2021. In June of this year, the price extended above that old ceiling, but failed and reestablish resistance toward the end of June.
The move to the upside today is using that old ceiling as resistance, and the price has since rotated back to the downside. The price currently trades at 0.86159. The price is down for the 1st time in 4 trading days.
Drilling to the hourly chart, the next target comes in at 0.86036. That represents the high price from Tuesday's trade and also a swing high yesterday before breaking higher.. A move below 0.86016 would be needed to give the sellers some added comfort. Below that and traders would start to target the rising 100 hour moving average at 0.8576 along with the 38.2% retracement and swing low from yesterday near 0.85693. Both those levels would need to be broken to give the sellers additional comfort that the high is in place.
For now however, the old ceiling from the daily chart did a good job of stalling the rally. The sellers have taken back some short-term control, but they have more work to do starting with a move back below the 0.86036 level.
