Selling the Retrace Up in EUR/GBP Again
EUR/GBP has retraced higher today, but we decided to sell the pullback
The EUR/GBP has been bearish for a few months now, especially picking up pace after the UK reached a trade deal with the EU in December, which opened the door for the Brexit deal. The GBP has been bullish since then, turning this pair bearish as a result.
During this time, moving averages have been doing a great job as resistance indicators, stopping the pullbacks higher and pushing the trend lower for the pair. On the H4 chart above, we can see that the 50 SMA (yellow) was providing resistance for the EUR/GBP.
But, since the middle of February the decline has picked up pace further, and the 50 SMA hasn’t been able to catch up with the price. So the 20 SMA (gray) has taken up that task, pushing the EUR/GBP lower. Today we are seeing a retrace higher after yesterday’s decline, so we decided to open another sell forex signal here. Now let’s wait and see whether the bearish trend resumes again soon.
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