EUR/GBP Turns Bearish as the 100 SMA Pushes Down
EUR/GBP has been pretty bearish since the middle of August. But, after UK Prime Minister Boris Johnson and the EU reached a Brexit deal early this month, the decline picked up further pace. Although, we know how that went, the UK parliament didn’t pass it and now the UK is heading for general elections in December.
The uncertainty increased once again for the GBP and this pair has traded sideways for the last two weeks. Although, heading into election is a win/win situation for the GBP, hence the climb higher in the last few days for GBP pairs.
During this time, EUR/GBP was finding resistance at the 100 SMA (red) on the H1 chart. This moving average has been moving lower and it has pushed the highs lower for this pair. Today, the price turned bearish again as GBP/USD keeps climbing higher, while EUR/USD has stalled. I expect this pair to remain bearish as we head into the elections in UK, so pullbacks higher to moving averages should be seen as good opportunities to sell this pair.
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