EURGBP up over 1% in trading today

Around twenty-four hours ago, 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 was trading at the lowest level since January 20 and in the process was testing the 100 day MA at 0.8750. The low reached 0.87539 around 4 pips shy of the 100 day moving average Moving average A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot A moving average is a statistical tool that is used to smooth out short-term fluctuations in data and reveal longer-term trends. It is calculated by taking the average of a certain number of data points over a specific period of time, and then plotting that average as a line on a chart. The most common types of moving averages are simple moving averages (SMA) and exponential moving averages (EMA).In financial markets, moving averages are often used to analyze stock prices, exchange rates, and ot Read this Term.

Since then the price has shot back higher with the index reaching a high price today of 0.88959 - for a total gain of about 142 pips. The current price trades just off that high at 0.8884.

Technically, the run back to the upside yesterday initially found sellers ahead of its 100 hour moving average (see below line in the chart above). However in European trading today the price was able to extend above that moving average (currently at 0.88102), and also the 200 hour moving average (green line) currently at 0.88248.

The pair's rise continued through the 38.2% retracement of the February trading range at 0.8839, and the 50% retracement at 0.88657. The last hurdle has been getting above the 61.8% retracement of 0.88921. However the price has rotated off of that level.

If the buyers are to maintain firm control, staying above 50% retracement level at 0.88657 would be key. There is a swing area from the 50% up to 0.8869 that should stall a corrective move lower if the buyers are to remain in control. Conversely a move below, would likely lead to more downside probing.