The Bearish Trend Continues for EUR/GBP, As It Returns Below the 20 SMA Again - Forex News by FX Leaders
The downtrend is back on

The Bearish Trend Continues for EUR/GBP, As It Returns Below the 20 SMA Again

Posted Monday, April 6, 2020 by
Skerdian Meta • 1 min read

EUR/GBP turned quite bearish about three weeks ago, right t 0.95. That followed a big surge in the previous three weeks, which took this pair from 0.83 to 0.95. But, the surge in GBP/USD reversed this pair lower, even though EUR/USD also climbed higher.

The 20 SMA (grey and the 50 SMA (yellow) were acting as support during the climb, but during the decline, the 20 SMA turned into resistance for EUR/GBP on the H4 chart, pushing the price lower. The 100 SMA (green0 also turned from slight support to resistance earlier.

Although, in the last session on Friday, as well as during most of the Asian session today we saw EUR/GBP retrace higher and move above the 20 SMA on the H4 chart. Some were suggesting that this might be a trend reversal, since the larger trend is still bullish. But, it didn’t take long and now this pair is below the 20 SMA again. So, the bearish momentum for EUR/GBP continues and we will try to sell pullbacks higher.

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

Leave a Reply

avatar
  Subscribe  
Notify of