The EURGBP moved above the 50% of the move down from the September 2020 high to the March 2022 low. The 50% level comes in at 0.87465. The low today reached 0.87465 right at that level. Traders look at the 50% as a barometer for buyers winning or sellers winning. The buyers are so far winning the price is at 0.8766 currently.
Looking at the hourly chart below, the high price today did take out the high price from Friday. Friday’s high price reached 0.87837. The high price today reached 0.87868. The buyers had their shot, and they missed.
So there is a little bit of resistance above and support below off the daily price action that is giving buyers and sellers an option with risk defining levels. Overall, the buyers are holding the better hand, but sellers can lean against the old high and put a stop above the level if the price should go higher.
On a move below the 50% level as 0.87465, would have traders eyeing the rising 100/200 hour MAs. That 100 hour MA comes in at 0.8709. The 200 hour MA comes in at 0.8693. Both are moving higher. The pair moved below both those MA on the corrective move lower last Wednesday, but once the price moved above both on Thursday, the traders used the 100 hour MA as a launch point to the upside.
This week the Bank of England is expected to to raise rates by 50 basis points sentiment was for a potential 75 basis point hike until the retail sales last week sent those chances lower.