Falls below lower trend line.
The EURGBP is taking charge today and impacting the EURUSD and GBPUSD. While the EURUSD remain down, the GBPUSD has moved into positive territory for the day.
The EURGBPs fall is helping to contribute to those moves.
Looking at the hourly chart, the EURGBP is trading below a lower trend line at 0.8724 now. That is close risk for shorts now.
For the day,the price has seen some bearish holds and breaks that helped to give traders the go ahead to push to the downside.
- The 100 hour MA (blue line) stalled the rallies in the London morning session on a couple of tests
- The 38.2% and 50% were broken at 0.87457 and0.87299
- More recently the price has moved below the lower trend line at 0.8724.
The next targets are the swing lows at 0.8716, 0.87087 and 0.8706. A move below those levels opens up the downside potential.
Looking at the daily chart, the 0.86907 is the 61.8% of the move up from the 2017 low (to the 2017 high). That level also corresponds roughly with the lows from December 2017 at 0.86885 and January at 0.86861. That is a key target ahead of the March low (see chart below).