Buyers make a play in EURGBP but runs into resistance

200 hour MA/swing area stalls the rally today

The EURGBP spent most of the trading week trading up and down with a base near 0.8547 to 0.85508 and a ceiling around the 0.8580 area.   The 100 hour MA was also a resistance level that turned back the price yesterday and today….until it didn’t.

200 hour MA/swing area stalls the rally today

The “didn’t”  happened today when the pair moved above the 100 hour MA (blue line) and then the downward sloping trend line.  Sellers turned to buyers. The price moved higher.

That move took the price back above the aforementioned 0.8580 level and then targeted the 200 hour MA (green line). The price of the EURGBP had not traded above the 200 hour moving average since March 5.  Near the moving average is also a swing area between 0.8594 and 0.85955.  

When the price reached the cluster resistance, sellers entered. The price has returned back toward the 0.8580 area.  

What now?

Next week most likely. That is next week, traders will have to decide if the price is going to extend above the 200 hour moving average/swing area OR keep sellers more in control.  

Invest in yourself. See our forex education hub.

Source link

Categorized as Forex

By Jonathan Prop

Jonathan Prop is an independent financial advisor. He has been working in finance for the last 20 years. After retiring early in his 40s, Jonathan decided to help others get to grip with financial markets, particularly his area of expertise - forex!

Leave a comment

Your email address will not be published.