EUR/GBP Reverses at the 20 SMA

The highs in EUR/GBP have been getting lower and today we saw a reversal at the 20 SMA on the H4 chart

Written by: Skerdian Meta • Monday, February 10, 2020 • 1 min read

• Last updated: Monday, February 10, 2020

the 20 SMA reversed EUR/GBP lower earlier

EUR/GBP has been bearish for several months, since the ECB turned even more dovish in September last year, cutting interest rates and restarting the QE programme again. The general elections in the UK in December gave the GBP a big boost after BoJo won a clear majority in the British Parliament, sending EUR/GBP further down.

But, we saw a reversal in the GBP after the elections, as traders concentrated on the UK economy, rather than Brexit and the UK economy is not in a good shape, just like the rest of major economies around the globe. EUR/GBP reversed higher again in December.

But, it hasn’t been able to make new highs this year. So, this pair has been trading in a range since mid December, between 0.8580 and 0.9380. In fact, highs have been getting lower and today we saw another reversal down, this time from the 20 SMA (grey) on the H4 chart.

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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.