EURGBP up over 1% in trading today | Forexlive

Around twenty-four hours ago, the EURGBP was trading at the lowest level since January 20 and in the process was testing the 100 day MA at 0.8750. The low reached 0.87539 around 4 pips shy of the 100 day moving average .

Since then the price has shot back higher with the index reaching a high price today of 0.88959 – for a total gain of about 142 pips. The current price trades just off that high at 0.8884.

Technically, the run back to the upside yesterday initially found sellers ahead of its 100 hour moving average (see below line in the chart above). However in European trading today the price was able to extend above that moving average (currently at 0.88102), and also the 200 hour moving average (green line) currently at 0.88248.

The pair’s rise continued through the 38.2% retracement of the February trading range at 0.8839, and the 50% retracement at 0.88657. The last hurdle has been getting above the 61.8% retracement of 0.88921. However the price has rotated off of that level.

If the buyers are to maintain firm control, staying above 50% retracement level at 0.88657 would be key. There is a swing area from the 50% up to 0.8869 that should stall a corrective move lower if the buyers are to remain in control. Conversely a move below, would likely lead to more downside probing.