The EURGBP is major cross-currency pair that rose sharply this week. With the ECB meeting ahead next week, understanding the technical levels in play could open the door for trading opportunities.
Technically as well, the market traders have used the technicals on the extremes to define support and resistance, and the correction off the high this week, has seen a swing level/area do a good job of holding support.
Looking at the 4-hour chart below, the pair on Monday and Tuesday based at the 100/200 MA. The basing at the level, gave the buyers the go ahead to push higher. On Wednesday and Thursday, the price raced higher but found resistance sellers against the 100 day MA at 0.8701. The highs got within a couple pips of those highs this week.
The subsequent move lower saw the pair move down below the 38.2% retracement at 0.86455, but held support near a swing area near 0.86357. That level./area between 0.86357 and 0.8655 will be a key barometer in the new trading week. Stay above is more bullish. Move below would increase the bearish bias once again.
For more details, watch the video above.
This article was written by Greg Michalowski at www.forexlive.com. Source