EURGBP pair was pushed lower yesterday after the ECB announcement. The pair has traded above 0.88000 and was using its 4 hour moving averages as support but the weakness in the Euro sent the price driving under this indicator at 0.87729 which was retested for good measure before the decent was halted at 0.87187. This market has been in a sideways range for many months so traders are watching for a breakout above 0.90000 with yesterday’s price action denting their hopes. The retracement this morning has gotten to 0.87492 so far with a full retrace of the move down pointing to 0.88500 being targeted.
Support can be seen on the chart at 0.87162 followed by the 0.87000 level. A move under the end of May lows can target 0.86900 followed by 0.86671 and the important swing low at 0.86200. From there buyers would look to enter the market as far down as 0.85700 but a loss of 0.85500 may result in a shakeout of positions and a drive to 0.84000 and beyond.
