Trades between 100 and 200 hour MA
The EURGBP has been moving up and down since February. The high since then peaked at 0.7492. The low was back in July at 0.6933. There have been other swing lows between 0.6983 and 0.7025 (see chart below). Last week, there was a brief peek below the lower extreme at 0.6980, but that was quickly reversed. ON the topside over the last 4 trading days, the high has stalled near the 0.7025 level. Today there was another little peek as the high reached 0.7029.
Looking at the hourly chart, the pair is buying time between the 100 and 200 hour MAs. The 100 hour MA comes in at 0.70049 while the 200 hour MA comes in at the 0.7030 and moving lower. The lower 100 hour MA was tested today, and held. Buyers were leaning against the level.
The higher 200 hour MA (at 0.7030) is also providing a level for traders to lean against. IN this instance, traders are selling against it. Going back to October 15, there have only been a few times where the price has traded above the 200 hour MA (green line). The most time was spent on the US employment day but the price moved back below and sellers started to take back more control.
If a low is in place and there will be a more meaningful correction higher, the 100 hour MA must hold and the price needs to get and stay above the 200 hour MA. It is as simple as that. Let the price and the tools tell the story.
