200 hour moving average stalled the rally for now…
As London/European traders look to exit for the day, the EURGBP is testing the key 200 hour moving average and finding some stall against the risk defining level.
The 200 hour moving average (green line in the chart above) comes in at 0.8477 currently. The high price has ticked up to 0.8478 and backed off a little. We currently trade at 0.8472 (as I type).
Earlier today, the pair got a boost after breaking above its 100 hour moving average (blue line at 0.84372 currently). The correction low in the New York session stalled against the high from yesterday at 0.84488.
So the buyers are taken more control after bottoming near a lower trend line on Friday (see green numbered circles). However, there is still more work to be done including getting above the 200 hour moving average, the downward sloping trend line and the 50% retracement at 0.84882.
For traders looking for more upside momentum, a move back below the 0.84568 and then 0.84488 swing highs would spoil some of the bullish run.
For sellers, a move above the 200 hour moving average and then 50% retracement are the close risk levels.