EURGBPs break of trend line and MA fails
The GBPUSD has been coming off its 100 hour MA after a failed break above - see prior post.
Looking at the EURGBP, it too had a break of support defined by a trend line and the 100 hour MA at the 0.8910-13 area. The fall below took the price to a low of 0.89056. The price corrected back higher, moved above both levels and sellers switched intraday bias around. There was more buying and the price action has seen the price move up to a high of 0.89388.
What next?
Drilling to the 5-minute chart below, the corrective move has now taken the price above its 100 bar MA (blue line) at 0.89304 and a topside trend line. That is giving the pair more of a bullish bais intraday. Stay above the 100 bar MA will keep the correction going, with the 200 bar MA (and 50% retracement) at 0.8948-50 the next key target. That should be a tough nut to crack on a test. Expect sellers on a test.
PS. The GBPUSD is trading a new session lows and tests the lower trend line. The 200 bar MA on the 5-minute chart at 1.31169 is a target level. The price has traded below the 50% of the trend move higher which muddies the water for the trend move. Trading between the two moving averages now....(see blue and green lines in the chart below).
