A break would have traders looking toward the low for the year at 0.84496
As the GBPUSD has moved higher in the US morning session and extended a narrow 48 pip trading range at the start of the session to 68 pips currently, the EURUSD remains mired in a 25 pip trading range for the day (well below the 50 pip average over the last month).
That divergence between the major pairs (EURUSD and GBPUSD) has the EURGBP cross moving lower (lower EUR/higher GBP).
Looking at the daily chart, the decline in the pair's price has seen it move down to test the April 5 swing low at 0.84714. The low price just reached 0.84738 just above that level.
On a move below that level, the pair would next target the low from August and lowest level since February 2020 at 0.84496. Break below and there should be further downside momentum.
So far, buyers are leaning against the low level and have pushed the price a few pips higher to 0.8477 currently. However, the risk focused buyers are not out of the woods.
Dip buyers would find some comfort if the price can get above the 0.8493 area. That was near the low from yesterday and also near a swing low from earlier today (see red numbered circles on the hourly chart below).
Absent that, and the buyers are not winning.
