GBP/USD turned bearish in the first half of this month, after climbing higher since mid March. This pair lost nearly 500 pips, but the trend is still bullish, since the climb in the previous weeks was worth more than 12 cents, while the pullback lower wasn’t even half that amount.
So, GBP/USD has been climbing higher since the middle of March. During the climb, the 50 SMA (yellow) was providing resistance on the H4 chart for some time, but then it turned into support when the price moved above it. This was a sign that buyers were in control in this pair.
Although, the upside motion hasn’t been so straightforward during the last few weeks. We have seen some decent pullbacks lower, but moving averages have done a good job in providing support. The 100 SMA has held the declines earlier this week, while today it was the 50 SMA (yellow) which came to rescue.
The reversal today happened higher, which shows that buyers are jumping in quicker on pullbacks, suggesting more buying pressure. But, the USD weakness is driving this pair now, as we wait for Donald Trump to speak on China’s takeover of Hong Kong. So, buyers remain in charge in this pair and pullbacks lower should be seen as good opportunities to go long.