Trades around ceiling from Friday/Monday
The EURGBP shot higher yesterday. The move higher was goosed on the break of the ceiling from Friday and Monday at the 0.8555-59 area (see hourly chart below). The price moved to the highest level since Nov 9, 2016 at 0.89479 today.
Today, the price is back down and looking to reverse all the gains from yesterday. In the process, the price fell back below the 0.8855-59 area. The low reached 0.8838 so far.
Looking at the daily chart, going back to October 2016, there are a number of swing levels between 0.88509 and 0.8879. With the price trading at 0.8858 currently, the price trades in that area. Watch that area for clues going forward.
The pairs price action is unstable. The break higher yesterday should have kept a bid in the pair. So I am less optimistic below the 0.8879 level going forward. Another move below the 0.88509 should solicit more bearish price action. A move above 0.8879 and the buyers are winning again. Until then, the sellers have my trading bias.