The EURGBP is the major currency pair that has risen sharply this week. With the European Central Bank meeting next week, understanding the technical levels in action could open the door to trading opportunities.
Technically too, market traders have been using technical indicators to their extremes to identify support and resistance, and a correction off the top this week has seen the swing level/zone do a good job of holding support.
Looking at the four-hour chart below, we find that the pair is on Monday and Tuesday based on the 100/200 moving average. The basis at the level gave the buyers a rally to go higher. On Wednesday and Thursday, the price raced higher but found sellers resistance against the 100-day moving average at 0.8701. Highs have been within a few pips of those highs this week.
The subsequent bearish move saw the pair move down below the 38.2% retracement at 0.86455, but held support near the swing zone near 0.86357. this level. / The area between 0.86357 and 0.8655 will be a key gauge in the new trading week. Stay up is more optimistic. Moving lower will increase the bearish slope again.
For more details, watch the video above.