The EURGBP is consolidating in up and down trading today. Looking at the hourly chart, the pair is ping ponging between the falling 100 hour MA above currently at 0.86204, and the 100 day MA below (blue overlay) at 0.85938.
ON Friday, the price fell below the 100 day MA for the first time since October 17 (briefly) and before that August 26, but rebounded higher on Monday and traded above and below the 100 day MA. The US session low yesterday revisited the lows from Friday and the earlier low for the day on Monday, only to find buyers. The price closed above the 100 day MA yesterday giving the buyers some hope for a rebound.
Today's up and down price action needed to get back above the 100 hour MA, but momentum faded just ahead of the MA level and the price rotated lower.
The price action is indicative of a market that is not sure of the next directional move.
What next?
When there is uncertainty in the price action and it is between two technical levels of importance, traders look for the next shove outside the range.
That shove should come on a break below the 100 day MA at 0.85938, or a shove above the 100 hour MA at 0.86204. Traders will be looking for momentum on a break in either direction.
Until then, the buyers and sellers are battling it out, while risk and biased focus traders are simply waiting for the next clear signal. .