EURGBP… That Didn’t Take Long

Just two days ago I wrote an update about EURGBP and why I believed the bullish case was building. I closed that post with some thoughts on what I want to see next to confirm that this bull is leaving the station. Here’s what I said:

“But there are a couple things I’ll be keeping an eye out for to further confirm my bullish bias.

The first is a cross over of the 50 and 100-bar SMA’s. As you can see, the 50-bar SMA hasn’t been trading above the 100-bar in quite awhile. The next would be the 50-bar SMA crossing the 200. Finally, we’d like to see both the 50 and 100-bar SMA’s cross the 200-bar SMA.”

As a refresher, here’s a look at the 4-hour chart at that time:

EURGBP 4-hour chart from two days ago.

And here’s a look at the 4-hour chart now:

Price is now above the 200-bar SMA.

What’s happened in the last two days

When we look at the current 4-hour chart, the two things we were looking for have or are about to happen.

First, price has traded through the 200-bar SMA already. And we’re starting to get comfy above that level. The 200-bar SMA currently sits at 0.8509, so we’re not that far above it. But the fact we’ve had a relatively easy time chipping away at it is a great sign.

The second factor is the imminent crossover of the 50/100-bar SMA’s. The 50-bar SMA is only 6 pips below the 100 right now, and it’s moving higher at about 3 pips per candle while the 100-bar SMA is moving higher by only 1 pip per candle. That means we’d expect a crossover in the next three bars, or twelve hours.

There aren’t twelve hours of trading left in the day though, so we’ll likely have to wait until next week to see this happen.

So what’s next?

The next thing we really want to see is the 50 and 100-bar SMA’s cross the 200-bar SMA. That would put the moving averages in a purely aligned formation to the upside and be a very strong indicator that we’re heading much higher.

I’m currently holding a decent long position in EURGBP and our stop lose is now in profit, so we’re likely going to just keep moving it further and further in profit as the pair moves higher.

Geppy Forex

I began trading forex in 2005. It took me seven years to figure out how to be consistently profitable. I blog in an effort to hopefully help other aspiring traders become successful much sooner than I did.

8 thoughts on “EURGBP… That Didn’t Take Long

  1. Hi Geppy Many thanks for taking the time & effort in sharing your knowledge and experience
    through out the year,really appreciated.
    Merry Christmas & a happy,prosperous & wonderful New Year to you and yours.
    Keep Safe

  2. Whizzy Geppy!
    Great guy, great analyses, great trades… I could as well say great pips too, LOL!!
    But you really have been an inspiration for us FX green horns following your every step. Two years with you have been worth its weight in pips and I am sincerely grateful. If i have reason to cross continents like hope to soon, i surely will come with a Christmas gift delivered by hand.
    Thank you so very much for your hard work, sincerity and consistency all the while. Wishing you and the entire Geppy folks a marvelous Yuletide celebration. CIAO!!!

    1. Wow… truly humbled, my friend! Thank you for the well wishes. I love knowing I’m able to help people so much. Enjoy your holiday season and rest up for an incredible 2017!

  3. Just discovered you on Signal Start, started to investigate about you and I like what I found, you are doing a great job. Keep going.
    Regarding EURGBP signal, if you take a look at weekly charts it looks like it is going up, somewhere near 0.8670 and make a “Head and Shoulder” formation.
    Regards, and
    Happy New Year

    1. Thanks, Ovidiu. It’s gotta be hard evaluating signals on SignalStart. Most of the “top” ones seem like their stats have been altered. In terms of EURGBP, I’d caution you on anticipating a head and shoulders pattern. I’m aware of the potential for it to form, but there’s no indication yet that it will. I’m happy with our current position which is well in profit, and I’ll simply be locking in gains with a stop lose as things (hopefully) continue higher.

      Happy New Year to you as well!

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