Down from trend line resistance

As posted earlier, the EURGBP had moved to topside trend line resistance and found willing sellers. That was step 1 for a potential peak. The next steps was to get below retracement support and the 100 and 200 bar MA (blue and green lines on the 5- minute chart).

The sellers did take the price below retracement support but the 100 and 200 bar MA stalled the fall a bit. Eventually, those MA lines were also broken, and the selling intensified.

We have now moved down to test the 100 hour MA at the 0.8697 level. That MA has 2 separate peeks below the MA line, but each was rejected fairly quickly.

London traders may be squaring up before heading out in the London cold and sent the pair lower. Traders who like the dip and like the 100 hour MA may also be getting back in (or at least putting one last trade on before the end of the week). Where risk can be defined, and traders are breathing, they will lean at low risk levels.