Playing the Range Between 2 MAs in EUR/GBP - Forex News by Strategia Forex
The range between 2 MAs is enough for us

Playing the Range Between 2 MAs in EUR/GBP

Posted Friday, September 27, 2019 by
Skerdian Meta • 1 min read

EUR/GBP has ben on a bearish trend for nearly two months, since it reversed at 0.9320s. Since then, the traffic has been on one direction only and this pair lost around 550 pips from top to bottom. During this time, the 20 SMA (grey) and the 50 SMA (yellow) have been providing resistance on retraces higher and the 100 SMA (green) took up that job once.

Although, the price has turned bullish this week, as the GBP turned bearish on increased uncertainty regarding British politics. EUR/GBP broke above the 20 SMA and the 50 SMA, but the buyers couldn’t push above the 100 SMA on the H4 time-frame chart.

This moving average has been providing resistance for the last several hours, so we decided to open a sell signal from there. This chart is almost overbought as the stochastic indicator shows, so a reversal should take place soon. The 50 SMA has turned into support this week, so it’s not certain whether sellers will push back below it. But, the 50 SMA will be enough for our trade, since the distance between the 2 MAs is around 45 pips.

 

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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.
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