Daily euro to pound (EUR/GBP) SMA rates up to December 7, 2023
The 200-day euro to pound SMA was slightly below its actual exchange rate by the end of September 2022, indicating a recently weakening pound. This is accentuated by more short-term SMA, such as the five-day variant, which reveal a match between the current price versus its average price in the last five days. This is likely caused by investors leaving the pound after the UK announced its financial measures to combat inflation. The Simple Moving Average or SMA is a common metric used within stock and FX market analysis, and especially focuses on long-term trends. The 200-day SMA, especially, is considered very important, as it displays the average price of a stock or currency over the past 200 days (or 40 weeks of trading). If the price of the asset remains above this average, it is generally considered to be in an upwards trend.
