Selling the Retrace in GBP/USD at MAs
GBP/USD has retraced higher today after the decline yesterday, following the narrowing lead in the polls for Tories. We decided to sell it
[[GBP/USD]] turned really bullish in October after the EU and Boris Johnson reached a Brexit deal. This pair surged around 8 cents higher, but it failed to take out the big round level at 1.30. The price pierced it briefly, but returned back below it pretty soon, so the break doesn’t count.
Since late October, this pair has traded sideways within a range, between 1.30 and 1.28 more or less. As we know, the UK will hold general election on December 12, so there’s uncertainty surrounding the GBP right now, hence the hesitation from GBP traders to pick a side and stick with it.
So, the price has been moving up and down within this range and yesterday we saw a bearish move, after a poll which showed that Tories lead narrowed a little. Although, they still remain comfortably in the lead, far ahead of the Labour Party.
Today, we saw a retrace higher on the H1 chart, but the 50 SMA (yellow) and the 100 MSA (green) are providing resistance. Besides, this pair is overbought on this time-frame now, so we decided to open a sell forex signal up here, hoping for a bearish reversal soon.
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