EUR/GBP Breaks Above the Triangle, As the 50 SMA Turns Into Support - Forex News by FX Leaders
The pullback seems over after more than a month

EUR/GBP Breaks Above the Triangle, As the 50 SMA Turns Into Support

Posted Tuesday, October 20, 2020 by
Skerdian Meta • 1 min read

EUR/GBP has been bullish since the middle of February, when it surged more than 12 cents due to the coronavirus panic, which sent the GBP diving nearly 20 cents lower.  We have sen some pullbacks lower since then, but the overall trend remains bullish.

The latest pullback lower happened during the last month, with EUR/GBP retracing nearly 300 pips lower, from below 0.93 to above 0.90. The 50 SMA (yellow) and especially the 100 SMA (green) turned into resistance for this pair and a descending trend-line formed at the top, connecting the highs.

At the bottom, this pair formed a support zone above 0.90, so a triangle was forming in EUR/GBP , during the latest retrace down. yesterday sellers tried the down-side, but failed once again and the price bounced from there. Today, the top of the triangle has been broken, together with the moving average, as the GBP turned bearish after pessimistic comments from BOE’s Vlieghe. The pullback sesms to have ended now and buyers are back in control. So, we will try to buy this pair on a pullback down to the moving averages, which is the top of the triangle as well.

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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.
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