EURGBP has an up and down day but trades near the 100/200 day MAs

The EURGBP reached to the lowest level since May 18 and May 23rd lows which came in at at 0.8432. The low price today reached the same level. The low today did also see the price move below the 100 and 200 day MAs at 0.8449 and 0.8441 respectively. However, the aforementioned 0.8432 low could not complete the break lower and the price rebounded back higher.

The 0.8432 level is like a wild card over the last few months. The bottom at that level today increases the levels importance going forward. Be aware.

Drilling to the hourly chart below, the subsequent rise off the “wild card” level saw the price spike back higher and in the process move back up to test the falling 100 hour MA (blue line in the chart below). The price briefly moved above the MA level,, but could not extend to the high from yesterday at 0.8488. Sellers leaned at 0.84835 when the 100 hour MA was at 0.84805.

The move back to the downside has taken the price all the way back down to the 100 and 200 day MAs at 0.84489 and 0.84409 respectively. The price low just reached 0.84404 and trades at 0.8445.

What now?

The song remains the same.

That is, move below the lower 200 day MA at 0.84409 and stay below, and then tackle the wild card level at 0.8432 would open the downside. There should be more selling on the breaks of those levels going forward.

Conversely, if the dip buyers against the levels can hold support and the price move and stay back above the higher 100 day MA at 0.84489, and that could/should set up the market for another run up to the 100 hour MA at 0.84722 over time where the battle can continue.

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