The EURGBP waffled within the confines of the 100 hour MA above and the 200 hour MA below for the first 9 or 10 hours today (blue and green lines). The price moved below the 200 hour MA and ran lower. In the process, the price fell below the 100 day MA and the 38.2% retracement ( move up from the November 19 low) at 0.8512 to 0.85145. The low reached 0.84999 (call it 0.8500). That was a natural support target but above another target area in the 0.84886 to 0.84969 (50% and swing levels - see green numbered circles).
The move to the upside has now taken the price back above the 200 hour moving average and the 100 hour MA (green line at 0.85264 and blue line at 0.85407). The bias tilted more in the favor of the bulls/buyers.
What now?
The move back above the 100 hour MA has pushed the price to another swing area ahead of the high from last week that swing area between 0.8550 and 0.85524. Just above that is the 200 day MA at 0.85551. Getting above those levels would add to the bullish bias and have traders thinking toward the high from last week at 0.85985. Earth.
Conversely, if the swing area/200 day MA stall the rally and the price starts to trade comfortably back below the 100 hour moving average at 0.85412, the technical bias will become more neutral with the 200 hour moving average at 0.85266 as the next downside target.
