Stalls near 61.8% retracementThe EURGBP has been in a downward trend over the last few days, and in the process have erased 61.8% of the move up from last weeks lows. It is also almost reversed the gains after the more dovish BOE comments last week. That move took the price of the pair up to the 100 day MA on Thursday (see post here) at 0.8041. The high reached 0.89379 before stalling and starting the fall lower.
The fall today has been able to move back below the 200 hour MA (at 0.8844 now) and the 100 hour MA and 50% retracement at 0.8834-35 currently. Those levels are now risk for shorts.
The pair is testing the 61.8% of the move up from the November 1 low. There is a little stall at the level.
Last week, the pair fell below the 200 day MA (green step line on the chart above at 0.8763 now), but then rebounded, based against the level and shot up to the 100 day MA line.
So on the wide, the trading remains between the 100 day MA above at 0.89416 and the 200 day MA below at 0.8763. That’s the wide.
In between, sits the 100 and 200 hour MA at 0.8835 and 0.8844 respectively (blue and green smooth line in the chart above). They will be the «bullish above» and «bearish below» barometer for the market going forward.
Right now, the sellers are more in control being below those levels. The 0.8792 is the next downside target. That was the swing low from October 30. Then the key 200 day MA at 0.8763.