Going Long on EUR/GBP at the 50 SMA - Forex News by FX Leaders

Going Long on EUR/GBP at the 50 SMA

Posted Wednesday, June 12, 2019 by
Skerdian Meta • 1 min read

In the last couple of weeks, I have highlighted the uptrend in EUR/GBP, as we have picked a few trades on the long side in this pair. The trend has been pretty consistent since the beginning of May, with EUR/GBP climbing more than four cents higher and even breaking above the 0.89 level this week.

During the first few weeks of the climb, the trend was pretty strong and the 20 SMA (grey) was providing support and pushing the price higher, as it is usually the case with smaller period moving averages during strong trends. In the second half of this uptrend, the pace slowed and the 50 SMA (yellow) caught up with the price.

Today we saw a retrace lower as the GBP received some bids on Boris Jonson’s comments that he is not aiming at a do-deal Brexit. But, the 50 SMA held its ground well and the price has bounced 20 pips higher off it. The stochastic indicator is oversold on the H4 chart so the pullback is complete. We opened another buy signal in this pair a while ago, now we’re waiting for the bullish trend to resume.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

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
Comments
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments