EURGBP trades to the lowest level since December 17
The EURGBP ran to the downside today.
Looking at the 4 hour chart above, the price traded above and below its 200 bar moving average earlier today (and yesterday) at 0.84901.
However, when the GBPUSD started to move higher about 5 so hours ago, the EURGBP momentum to the downside started. The run has now taken the price below the lows for the year at 0.8454 and 0.84467 respectively (see yellow area in the chart above). That area is now a risk/bias defining level for traders.
The run lower continued through the 50% retracement at 0.84272, but did stall just ahead of its lower trendline at 0.84166. The low price for the day reached 0.8422 so far.
The price has rebounded back above the 50% retracement level but remains below the old swing lows from earlier this year. Stay below that yellow area, and I will give the sellers more control. Move above and the waters become more muddy as trendline support held, the 50% retracement failed as did the old low floor.