50% of the move up from the May 2016 low
The EURGBP tumbled on the GBPUSD squeeze higher. The move lower took the price below 0.8354 to a low at 0.8310, but we have seen a quick burst higher.
The question now for traders is do we trade above or below that 50% level at 0.8354? We trade right at that level now.
Looking at the daily chart, the price fell below that 50% level on 4 separate occasions going back to December. Each break below, could not close the hourly bar below that level. This is the 5th separate break. Can the price break below and stay below now? If it can the sellers remain in control and we could see a test of the December low at 0.83039. Behind that is the swing low fro July at 0.8247.