EUR/GBP Reverses Down After a Less Dovish BOE

EUR/GBP made a big bearish move in the second week of December, after the UK elections which were won by Boris Johnson. But, the initial optimism that things were finally going in a direction wore off, the GBP turned bearish and this pair turned bullish.

EUR/GBP traded sideways for a few weeks after that, but it turned bearish in the last two weeks, as EUR/USD also turned bearish. This week the price retraced higher, although the price was finding resistance at the 50 SMA (yellow) on the H4 chart.

Earlier today, buyers gave another push higher, breaking above the 50 SMA, but the 100 SMA (green) turned into resistance. The price reversed down from there and, after the Bank of England meeting, the decline accelerated, as they turned less dovish than expected. Now this pair is around 60 pips lower and the sellers are back in control, so pullbacks higher should offer some good opportunities to sell.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

Related Articles

Silver Climbs 1.4% to $33 as Juanicipio Deal and Tensions Fuel Rally

4 hours ago

Save

USD/CAD Targets 1.4016 as U.S.-China Truce and Canada Jobs Data Weigh In

5 hours ago

Save

Gold Rebounds to $3,266 as Traders Eye $3,347 Breakout Opportunity

5 hours ago

Save

Comments

0 0 votes

Article Rating

Subscribe

Login

Notify of

new follow-up commentsnew replies to my comments

Please login to comment

0 Comments

Oldest

Newest Most Voted

Inline Feedbacks

View all comments