GBP/USD was trading on a slight bearish trend last week, but on Thursday it turned extremely bullish. The joint statement between the Irish Prime Minister Theo Varadkar and the UK PM Boris Johnson made headlines across the globe, increasing hopes of a Brexit deal.

That sent the GBP surging and this pair has climbed more than 600 pips so far. The first wave was really strong as seen from the H1 chart above. On Monday the climb stopped and we saw a retrace lower. But the 50 SMA (yellow) held as support for this pair.

On Friday last week, it was the 20 SMA (green) which provided support on this time-frame once it caught up with the price, so there was no pullback back then, showing the strength of that move. This week the trend is not as strong, but the price keeps moving higher. GBP/USD found support at the 50 SMA again today and bounced off of it. So, we will wait for the 50 SMA to catch up again and probably go long from there.