EUR/GBP Turns Bullish at the 50 SMA Once Again

EUR/GBP has been bullish for about a month and the 50 SMA is keeping the trend in place right now

Skerdian Meta•Monday, June 3, 2019•1 min read

The bullish trend continues for this pair

EUR/GBP has been trading on a bullish trend since the beginning of May when it turned bearish below 0.85. Now it trades at 0.8860s, which means that this pair has climbed over 350 pips so far. In the first three weeks, the trend was pretty strong and the 20 SMA (grey) was providing support for this pair, thus pushing it higher.

In the following weeks, the uptrend slowed and the 50 SMA (yellow) caught up with the price. So, now the 50 SMA has turned into support for EUR/GBP. This moving average held its ground pretty well all week last week and now the price has just jumped off of it once again.

You can see that the price just touched the 50 SMA earlier today and formed a pin candlestick on the H4 time-frame. That’s a reversing signal after the pullback lower which took place since last Friday and the price reversed higher after that. We have been buying this pair, but missed that opportunity this morning. So, we will wait for another pullback at the 50 SMA and try to go long on this pair when that happens.

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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.