The EURGBP used the 100 day MA as a ceiling on Wednesday and Thursday.
On the downside, the 200 day MA and 100 hour MA was broken on Wednesday and tried to stay below into trading yesterday. However, after breaking back above, resistance became support again. The price moved up to test the 100 day MA again in the NY trading session yesterday (and found sellers).
Today, the price reaction was initially to the downside in the European session but true to the moving average support, buyers leaned against the 100 hour moving average and push the price to the upside.
This time, the ceiling against the 100 day moving average was broken, but the next target area near the 61.8% retracement of the move down from the July high at 0.84899, and a swing area between 0.8488 and 0.84946, found willing sellers.
After falling back below the 100 day moving average over the last 4 hours, the momentum to the downside has increased with the pair moving back to.....drum roll.... the 100 hour MA.
Technically, the price has been doing what it should do around the moving averages, retracement level and swing area.
- Sellers sold on the break of the 100 hour moving average and 200 day moving average,
- Buyers bought on the way back above the 100 hour moving average and 200 day moving average,
- Sellers leaned against the 100 day moving average,
- Buyers bought after breaking above the 100 day moving average,
- Sellers leaned against a swing area and the 61.8% retracement.
- Buyers are buying against the 100 hour MA again.
What next?
- Fall below the 100 hour moving average is more bearish with the next target at the 200 day moving average at 0.8437
- absent that, and a break back above the 100 day moving average at 0.84698 would tilt the bias more to the upside and have traders looking back toward the 61.8% retracement
