The EURGBP has been stepping lower since moving above its 200 day moving average in early December, and failing. In mid-December the price tested that 200 day moving average, found sellers against it and has push lower since that test.
In early January, the price moved below a swing area on the daily chart below 0.8377 to 0.8393. This week, the price moved toward that level (on Tuesday), reached 0.8378, and found willing sellers.
The last two days have seen a rotation back to the downside with the new low today reaching 0.83048
Sellers are still in control.
The next downside target comes against the February 2020 low at 0.8283. The December 2019 low comes in at 0.8259. Those are the next major targets on further downside momentum.
What would hurt the bias on the daily chart? Watch the 0.8340 level on the daily chart. That is near the highs from today and yesterday, and near an old downward sloping trendline. Admittedly, that line as seen lots of price action above and below during the month of January. However, sellers against the level the last two days may be indicative of sellers leaning. Absent that, the swing area between 0.8377 and 0.8393, are resistance target that would need to be broken if the buyers are to take more control.
Drilling to the hourly chart, the last few hours has seen a momentum move to the downside after breaking through a swing low area between 0.83219 and 0.83242. That area may also be short term resistance for traders.
