Swing area between 0.8860 to 0.88766. 50% midpoint at 0.88788
The EURGBP moved below a swing area AND the 50% retracement of the range since December 2019 at 0.88788. The swing area comes in between 0.88603 and 0.88766. It has a number of swing highs and lows going back to March 2020, with a strong floor developed between May and yesterday's trade within that area (see red numbered circles).
In trading today, the high price stalled within the swing area and below the 50% retracement at 0.88788. That keeps the sellers more in control. Stay below 0. 88788 is more bearish on the daily chart. Move above, and sellers are disappointed on the initial break of the floor area.
Drilling to the hourly chart below, the NY session high today also stalled against a downward sloping trend line and has moved away from the falling 100 hour MA at 0.88837. That MA is getting closer to the 50% retracement from the daily chart at 0.88788 which would increase the levels importance technically, going forward.
Sellers are trying to take more control in the EURGBP on both the hourly and the daily. However, the sellers need to keep the price below the 50% and the swing area on the daily and hourly charts to keep that bias and control. Failure to do so, and there should be a reversal back higher in the pair on the disappointment from the break lower.
