On Friday final week I opened a promote foreign exchange sign in EUR/GBP on the 50 SMA (yellow), because it was reatracing larger. This pair has been bearish for the reason that starting of this yr, after the UK and the EU reached a commerce deal on the finish of 2020, validating the Brexit deal reached earlier.
In consequence, the GBP turned bullish whereas EUR/USD turned bearish, as we defined in considered one of our earlier posts on this pair, the place we additionally opened a promote foreign exchange sign earlier. However, the value moved above the 50 SMA in EUR/GBP at the moment, because the Euro turned bullish for a while, whereas the GBP was nonetheless declining.
This transferring common pierced the 100 SMA (inexperienced) on the H4 chart, because it has performed so twice earlier than. However, the shopping for stress eroded and the pullback highers appears to have come to an finish now, which appears much like the 2 earlier events. We determined to open one other sell forex signal, as the value comes again to the 100 SMA. Now let’s watch for the bearish development to renew once more in EUR/GBP .