EUR/GBP Reverse Higher, But Fails at the 20 SMA
EUR/GBP bounced 40 pips higher this morning, but the 20 SMA is stopping the climb
EUR/GBP has been on a constant uptrend since early May. The GBP turned bullish during this time, but the climb in the Euro has been stronger, hence the bullish trend in this pair. This bullish trend started after EUR/GBP surged 12 cents higher in March, then pulled back lower to around 0.87, where it started the uptrend.
As a result, this pair has climbed around 5 cents up to the top until the end of June. Buyers tried the top side again, but they failed and the price has been pulling lower for about two weeks, although the larger trend remains bullish. We have tried both sides in this pair, selling retraces higher and being the pullbacks lower.
The latest trade was a buy signal, which we opened after EUR/GBP formed a small doji candlestick at the bottom, which is a bullish reversing signal. The price bounced around 35 pips higher, getting 2 pips close to out TP target, but the 20 SMA (grey) stopped the climb and now EUR/GBP has given back some of the gains. We remain long here, hoping that the earlier bullish momentum will come back after this pullback lower.
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