EURGBP bangs against support for the 2nd time today. 100 hour MA and swing area in play.

The EURGBP – a major cross-currency pair – has seen up-and-down price action today. The initial low found support near the low of a swing area and 0.86982. The subsequent move back to the upside took the price up to 0.8725 before rotating back down again to retest the low from earlier today. Now, the 100-hour moving average has joined the glow of the swing area at the 0.8698 level. Just below that level sits the 200-day moving average of 0.86943.

So the support from the low of the swing area, the rising 100-hour moving average, and even the 200-day moving average (at 0.86943), and 38.2% retracement of the move-up from the October low (at 0.86924) are all near converging (in an area between 0.86921 and 0.8698) to define a key support level.

When you have a lot of confluence in a relatively narrow range, it becomes a key level for both buyers and sellers. Stay above and get another bounce like we saw earlier today.

Conversely, move below, and buyers turn to sellers with traders looking down toward the 50% midpoint 0.8677, and the rising 200-hour moving average at 0.86712.

This article was written by Greg Michalowski at Source