EURGBP trades between the 100/200 hour moving averages

Yesterday I posted of the EURGBP EUR/GBP The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur The EUR/GBP is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the British pound of the United Kingdom (symbol £, code GBP). The pair’s rate indicates how many British pounds are needed in order to purchase one euro. For example, when the EUR/GBP is trading at 0.7500, it means 1 euro is equivalent to 0.75 British pounds. The euro is the world’s second most traded currency, whilst the British Pound (GBP) is the world’s third most traded cur Read this Term moving to a key support at the 100 day MA at 0.85805 (see: EURGBP tests 100 day MA. Key support). Risk can be defined and limited against the key moving average.

Risk focuses traders leaned and the price did indeed bounce higher off of that key support level Support Level A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a A trading support or support level represents a given price that acts as a temporary barrier for an asset. In particular, this level ensures an asset’s price will not fall below it or will encounter difficulty in doing so.All assets can utilize supports, be it forex, equities, commodities, etc. A given asset's support level is created by buyers that enter the market whenever the asset falls to a lower price. Basic support levels can be calculated and charted by identifying the lowest lows for a Read this Term. The pair was able to get back above the 61.8% retracement at 0.86104 which was close target resistance. Getting above, started a more concerted move in the upward direction for that pair.

In trading today the high price reached 0.87312 (a gain of 150 pips off of the 100 day moving average). That took the price above a swing area off the daily chart between 0.8711 and 0.87205, but fell just short of the 50% midpoint of the 2020 trading range at 0.87365. The midpoint level is another key technical level. Sellers leaned against the key risk defining level. The current prices trading at 0.8709.

Looking at the hourly chart, in addition to the 50% retracement level, the high price today stalled just ahead of its 200 hour moving average at 0.87323. The combination of the 50% retracement and the 200 hour moving average increases that areas importance going forward. Getting above it is required to increase the bullish bias.

Keeping the buyers in play today, is the corrective low off the 200 hour MA/50% level is the holding of support at the 100 hour MA (blue line) currently at 0.86815.

So the price trades between the 200 hour MA/50% of the 2022 range on the topside and the 100 hour MA below has the buyers and sellers are battling it out and waiting for the next shove (bias is more neutral). Watch those moving average levels for bias defining clues going forward.