EUR/GBP - EUR/GBP Will Move on Until The 100-SMA - 08/29/2016 (GMT)

The euro is looking pretty weak against the pound at the moment, having broken below the key level of 8593, a previous resistance. The next test for the pair will be whether it can hold above the strong level of 0.8484. It has failed to break below here quite a few times recently, which highlights how important the level is for the pair.

On the 4-hour chart, the 200-period SMA is ready to provide a significant support to the price action around that area, while the ascending trend, not a significant barrier, is ready to become an obstacle for the bulls in case of a further rise. If it does continue to edge higher from here towards the 0.8593 level, it should find resistance along the way around 0.8580, another strong resistance level, over the short-term. A decisive break above that level, then we could see a more serious correction towards the 0.8700 region. On the other hand, if we see a close below the 0.8484 barrier, then we could see a much bigger retracement, following two consecutive winning months, where it can change the short term outlook to bearish.