EUR/GBP Picks Up Pace As Smaller MAs Come Into Play
Skerdian Meta • 1 min read
EUR/GBP has been on a bullish trend since the beginning of May. It climbed from 0.85 to 0.9330s until the middle of August but it reversed down and remained bearish until the last week of September. This pair fell to 0.8780s, but reversed higher again and has been bullish since then.
So, looking at larger time-frame charts, we conclude that the main trend is still bullish for EUR/GBP. The decline since August was just a retrace of the larger trend and now the trend has resumed again. In fact, it has picked up pace considerably this week.
Looking at the H1 chart, we can see that the 100 SMAs (green and red) used to provide support before on this time-frame. But now, the 20 SMA (grey) has turned into support for this pair. It has provided support all week, pushing the price higher.
So, EUR/GBP is extremely bullish at the moment,with the Euro retracing higher after being bearish for quite some time, while the GBP turning increasingly bearish on Brexit. If we see a retrace lower, we will try to go long, probably at the 20 SMA or the 50 SMA (yellow).