EUR/GBP Remains Bullish After Bouncing off the 20 Daily SMA
Skerdian Meta • 1 min read
EUR/GBP turned really bullish in late February and early March, as he coronavirus broke out in Europe. The Euro turned bullish for some unknown reason back then, while the GBP crashed lower, which sent this forex pair surging around 12 cents higher in a few weeks.
But, the climb stopped at 0.85 and EUR/GBP reversed back down, losing more than 7 cents during the second half of March. This raised questions for a trend reversal in this pair, but as shown on the daily chart above, the trend still remains bullish for EUR/GBP.
This forex pair formed a support area below 0.87 and it waited until the 100 SMA (green) caught up with the price on the daily chart. once the 100 SMA caught up, EUR/GBP jumped higher, reaching 0.90. But, we saw another pullback in the last several trading days, although the pullback seemed pretty weak.
Yesterday, the 20 SMA (grey) caught up with the price and today EUR/GBP jumped higher. Although, that came after the European Commission reportedly proposed a bigger-than-expected recovery fund to aid member states in dealing with the economic fallout from the virus outbreak. So, the trend remains bullish for this pair, which is also being helped today by the decline in GBP/USD.