EUR/GBP Reverses Up After Failing to Break the 100 SMA
EUR/GBP
We opened this forex signal with the EUR/GBP earlier on, as well as posting an update on it. We decided to go long, as this forex pair was moving lower in the morning. The Euro was going back down after the EUR/USD failed to break 1.21 yesterday, and it was dragging the GBP/USD down with it.
We believed that the 100 SMAs on the H4 chart would hold, and they did just that. Both the 100 simple and smooth moving averages currently stand at the 0.8840-50 area. The 100 smooth MA in particular has provided solid support on this timeframe chart for more than a week.
The same thing happened today, so it seems that choosing that spot and going long was the right decision. Switching to the H1 timeframe chart, we can see that the 200 SMA stands close to 0.8855, so that has helped, although not significantly.
EUR/USD and GBP/USD
Most of this is coming from the EUR/USD and the GBP/USD. The EUR/USD has climbed from 1.2010, and is trading about 20 pips higher now, while the GBP/USD has moved a bit lower. The GBP/USD is playing with the 50 SMA on the hourly chart now. If it doesn’t bounce higher from here now, the chances are that it will end up breaking it lower.
The EUR/USD is now playing with the same moving average, the 50 simple MA. The price in this pair is coming from below, which evidentaly means that it will head up. That being said, we need both of these moving averages to be broken in order for our fx signal to reach the TP target. The charts won’t be posted today, but your own platforms can be watched in place of them. We are profiting more than 10 pips now, meaning that this forex signal looks good.
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