The EURGBP has seen price action move lower in the Asian and early European session but has seen a rebound in the early New York session. The price of the pair has returned back into its 200-hour moving average of 0.86607 and for the 2nd time today found resistance sellers against that moving average level.
On the downside, the price did fall below the 38.2% retracement of the September trading range at 0.86359 but stalled against the swing high going back to September 13 near 0.8630. The price rebounded off that level on 2 separate occasions as well.
So support is down nearly 38.2% retracement at 0.8635 (and down to 0.8630), and resistance against the 200-hour moving average at 0.86607.
Traders will be looking for a break on either extreme with momentum in the direction of the break at some point. However, for now, the levels are levels to lean against on dips and on rallies.
This article was written by Greg Michalowski at www.forexlive.com. Source