Anyone Trading the Bounce Between MAs in EUR/GBP?
Skerdian Meta • 1 min read
The EUR/GBP had a real a roller-coaster ride in the first half of 2020, as all currencies were going crazy during that period. The price was bearish in Q1, dipping below 0.83 for a moment, before surging higher after the breakout of the coronavirus in Europe in March, sending this pair up to 0.95.
The EUR/GBP came back down to 0.87 and has been trading within a range around 0.90 since June. Although, the pressure might have shifted to the upside in December, after trading in a slight downtrend in November, moving averages kept the pressure to the downside until late November, but then the price moved above them and the pressure has shifted to the upside now.
Moving averages are keeping the EUR/GBP confined on the H4 chart
Moving averages have turned into support, particularly the 200 SMA (purple). This moving average has been supporting the EUR/GBP since early this month, except in the last week when the price dipped below it. But, it seems like the 200 SMA is working as support again today, as the 100 SMA (green) rejected the price yesterday after many doji candlesticks, which are a bearish reversing signal. The stochastic indicator is oversold again now, so the decline seems over. We might try to open a buy forex signal, although there’s not much time left until the markets close tomorrow afternoon for New Year’s day.