GBP/USD looks bearish at the moment. So, we decided to open a sell forex signal here.
– Oversold charts
– 50 SMA on H4 chart
– 100 SMA on H1 chart
Yesterday, the BOE (Bank of England) increased the votes to hike the interest rates, from 1 to 3, so the GBP found some bids. But as I mentioned in the last forex update yesterday, that doesn´t mean the BOE will start hiking interest rates tomorrow, and the market is realizing that.
So, we decided to look for short trades in GBP/USD since the USD fundamental and technical analysis points up, while the situation is completely negative for the Pound.
If you look at the H4 forex chart, the 50 SMA is standing just above where the price is right now, which means that it is providing resistance.
The 100 smooth moving average (red) is doing the same on the hourly chart. Besides that, the H4 chart is overbought since the stochastic indicator reached the overbought area.
So, these technical indicators are pointing down, but the strongest indicator for our sell forex signal, which we opened a while ago, was price action. I´ve been following this pair today and all I could see was the selling pressure around 1.2780-90.
The 100 SMA is doing a good job n providing resistance
The price has tried the upside quite a few times today, but every time the sellers jumped in and sent it back down.
So, we decided to pull the trigger earlier today. Although, if this pair is to move down it must break the 50 SMA (yellow), which is providing support on the downside, soon.