- That MA held support on Friday
EURGBP has seen a shift in the bias back to the downside after a move back below the 200 hour MA currently at 0.84955. The pair broke in the late London morning session and has been able to stay below in the US session so far. On Friday, that MA stalled the fall increasing the levels importance as a bias defining level.
The EURGBP pair last week moved above the 50% midpoint of the move down from the July 1 high at 0.85403 after 3 separate tests of the level on the hourly chart (on Tuesday, Wednesday and Thursday). The move was helped by the 50 basis point hike by the ECB. However, momentum could not be sustained and the pair reversed back down, finding support at the 100 hour MA on the same trading day.
On Friday, the pair traded above and below the 100 hour MA, holding the 200 hour MA. Today, the price also moved above and below the 100 hour MA before pushing lower and through the 200 hour MA.
The low today did stall near the low from Tuesday at 0.84768. The 100 day MA is at 0.8464 and is another target to get to and through to increase the bearish bias in the pair.
Alternatively, the 200 hour MA is close risk and bias defining level.
When a technical level is broken to the downside (like the 200 hour MA), it becomes a risk defining level. Traders will also use the higher 100 hour MA as resistance on a rebound. Move above it, and the sellers are no longer winning. Stay below and a battle between the buyers and sellers is on between the MAs.
For now, the sellers hold the strongest technical hand.
Trading analysis offered by RobotFX and Flex EA.
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