Getting Ready to Buy EUR/GBP at the Bottom of A Bullish Channel
Skerdian Meta • 1 min read
The EUR/GBP has become bullish in the first week of December, and it has only climbed up since then. The trend was steeper in the first week, but it has slowed its pace in the last three weeks. That said, this pair has formed a channel which it has vigorously respected at this time.
Three technical indicators are pointing up on this chart, can you spot them?
As can be seen on the H4 chart above, the uptrend has been slow but steady, and the moving averages have been lending a hand to the buyers as well. They have become a support as the price moved above them.
Apart from moving averages and the upward channel, the stochastic indicator has also played its part in this uptrend. The price has become higher every time stochastic approached the oversold area.
Now that the stochastic indicator is oversold, the price is at the bottom of the channel, and the 100 SMA (red) is providing support. We just opened a position here, as can be seen on the signals page. With high hopes, we will get some action today before the markets close for the weekend.