EURGBP has been up and down for most of 2024. Last week, buyers broke out higher and the price extended above the 200-day moving average and 50% of the decline from the December high near the 0.8606 area. Last week’s momentum sent the price to 0.8643 before moving lower towards the week’s close. The price closed Friday at 0.8557. This was right near the 200 bar MA on the 4-hour chart (lower green line on chart above).
This week, the pair (see 4-hour chart above) started the week near the 200-bar MA on the 4-hour chart. Sellers emerged and pushed the price lower towards a support floor between 0.8520 and 0.8529. The low arrived just above this level and began an up and down movement with an upward tilt.
This rally has now reached the converged 100 and 200 bar MAs on the 4-hour chart at 0.8563. There is some lock-in to technical levels as risk can be defined and limited to dual levels. If price can break above this level and the 100-day MA above 0.8571, it would increase the bullish bias of the pair. Conversely, stay below, and a new race towards the bottom cannot be ruled out.
Which route do you like?
The current level should be a key barometer for both buyers and sellers. .
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