Swing highs and lows between 0.8851-79
The EURGBP is sharply lower today after the more Hawkish BOE statement.
The pair has moved below the 32.8% retracement of the trend move up from the April 18th low. That level comes in 0.89256.
It is also approaching an swing area with a number of key swing highs and lows. That area is between 0.8851 and 0.8879 (see red circles in the chart above). Also in that area is the key 100 day moving average at 0.88531. The price has not traded below that moving average since May 18th, 2017. I would expect the market to respect that MA on the first test (with stops on a break). Look for a rebound against the levell. The low today has reached 0.88776 so far.
Drilling to the 4-hour chart, connecting lows from May 24th, shows a break of a trend line at 0.8910. Is that a break worth eyeing for today (i.e. a close risk level?). It might be a bit close but if it should hold, it will show the will of the shorts is strong. The 38.2% retracement level at 0.89256 is another risk level for shorts.
If the 100 day MA and swing area is broken at 0.8851-53, the 50% of the move up from the April 18th low comes in at 0.88083.