Oscillation zone between 0.8860 and 0.88766. 50% midpoint at 0.88788
The EURGBP has moved below a swing zone AND the 50% retracement of the range since December 2019 at 0.88788. The swing zone is between 0.88603 and 0.88766. It has a number of swinging highs and lows dating back to March 2020, with a solid bottom developed between May and yesterday’s trade in this area (see numbered circles in red).
In trading today, the high price has stalled in the swing zone and below the 50% retracement at 0.88788. This gives sellers more control. Stay below 0. 88788 is more bearish on the daily chart. Go over it and sellers are disappointed with the initial floor area breakdown.
Breaking through the hourly chart below, today’s New York session high also stalled against a descending trendline and moved away from the 100 hour MA dip at 0.88837. This MA is approaching the 50% retracement of the daily chart at 0.88788, which would technically increase the significance of the levels going forward.
Sellers are trying to gain more control over EURGBP both on time and on a daily basis. However, sellers need to keep the price below 50% and the swing zone on the daily and hourly charts to keep this bias and control. Failing to do so, and there should be a reversal higher in the pair on the disappointment of the lower breakout.