Forex technical analysis: EURGBP retries life above the 100 day MA
Deja vu or break and run?
The EURGBP is rushing higher after the ECB too, and it has a potential deja vu moment. The price moved above 100 day MA last week and rolled back over. The price just moved above the key MA for the 2nd time this year (see overlay on the 4-hour chart below at 0.89043).
Is it a deja vu moment that will fail?
Is it a break that will build momentum and run higher?.
Given the sharp move higher this time (it is a little different than the slower move higher last time), there could be some stall as profit takers come in against the MA level. I would not want to see 0.8888 cracked. That is the 38.2% of the trend move higher and was a swing level the last time the price tried cracking the 100 day MA last week (see hourly chart below). Risk levels for longs looking for more...
Looking at the daily chart below,t he 0.89257 is the 38.2% of the down from the 2017 high. That is the next target. Then the recent swing highs and the 50% at 0.89979 (call it 0.9000) would be a key target level later....