The EURUSD is falling and the EURGBP is also falling, but....

The EURUSD is falling and trading near low levels for the day. The EURGBP has also moved to a new session lows. However, that move lower is testing a cluster of technical levels in a relatively narrow range.

Between 0.8794 and 0.8802 sits:

  • The 200 day MA at 0.8802
  • The 200 hour MA at 0.8801|
  • The 38.2% retracement at 0.88002
  • The 100 hour MA at 0.87942.

The low did reach to 0.87904 on the dip but is now trading at 0.8802.

The cluster of technical levels should be a tough nut for traders to crack. There will be those who stick a toe in from the buy side as risk is defined and limited.

However, be aware that if broken again, there should be more downside momentum. The 0.8772-79 is home to a number of swing lows going back to November 20th (see chart above). That would be the next target area (see chart above).

On the topside, the pair closed at 0.8822 yesterday. That is the closest target. A move above will look toward the 50% midpoint of the move down from the November 28th high at 0.88347.

SUMMARY. Key area for the EURGBP with lots of technical support tools clustered together. Buyers should lean with a tight stop on a break. If broken the next target at 0.8772-79.