Technical Analysis

0.8732-46 is key topside area. 

The EURGBP has also moved higher, albeit at a slower pace than the EURUSD.

Looking at the daily chart, earlier today, the price bottomed at the low from December at 0.8686 (double bottom – see green circled numbers in the chart above).  

The rally has taken the price up to an old floor area (see yellow area). That area has been home to 5 other swing lows going back to June 2017(. There was a break lower in December that was quickly retraced. Yesterday, the pair moved below the area and raced toward the December low before the bounce on Draghi. 

Drilling on the hourly chart, the high today also stalled at the 38.2% of the move down from the Jan 19 high (see chart below).  So…there are a couple reasons to limit the rally.  On the way higher, the pair moved back above the broken trend line at 0.8720. That will be eyed now as support/risk for buyers. 

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