By Tuesday at 5 pm EST, EURGBP sellers had secured a 0.9008 close, which was well below our key level at 0.9040. This left us watching for selling opportunities from the 0.9040 area for a move toward 0.8920 and perhaps 0.8780.
This week’s aggressive selloff leaves the EURGBP overextended, particularly when we compare today’s price with the 10 and 20 EMAs in the chart below.
With this in mind, a bounce from the 0.8780 area early next week would not be a surprise. In fact, I’ll be keeping an eye on this level for a second opportunity to get short.
A daily close below the 0.8780 handle over the coming weeks would expose the next key support at 0.8600. A close below that would target the unfilled gap from April 21st at 0.8369.
This week’s aggressive selloff leaves the EURGBP overextended, particularly when we compare today’s price with the 10 and 20 EMAs in the chart below.
With this in mind, a bounce from the 0.8780 area early next week would not be a surprise. In fact, I’ll be keeping an eye on this level for a second opportunity to get short.
A daily close below the 0.8780 handle over the coming weeks would expose the next key support at 0.8600. A close below that would target the unfilled gap from April 21st at 0.8369.