TECHNICAL ANALYSIS

EURGBP bounces off key support … again


Support from 0.88603 to 0.8878. EURUSD low rose to 0.88649 today.

EURGBP rebounded on key support for the 2nd day in a row. Looking at the daily chart, the 0.88603 to 0.8878 area harbors a number of swing levels dating back to April 2020. Yesterday the low price hit 0.88688 and rebounded. Today the low price hits 0.88649 and bounces again. The price returns above a downtrend line, which has also given buyers hope that a bottom is in place.

Support from 0.88603 to 0.8878. EURUSD low rose to 0.88649 today.

This is the good news for dip buyers. The bad news is that the rebound is still modest.

Looking at the hourly chart, today’s high could not extend to yesterday’s high near 0.8816. The high price hit 0.8806 today. The pair also remains below its 100-hour moving average at 0.89217.

Ultimately, if price were to rebound off the key floor support on the daily chart, moving back above the 100 hour moving average would be seen as an indication of a short term bias change.

Until then, the pair may continue to have support against a strong low on the daily chart, but the short-term bias remains in favor of the sellers.

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