Last Friday we opened a sell forex signal in EUR/GBP. We based this signal on technical analysis like we do with most of our forex signals.

As you can see from the hourly EUR/GBP chart below, we sold this pair as it was retracing higher after a jump in GBP pairs due to some Brexit chatter.

The hourly candlesticks were forming pins and dojis and the stochastic indicator was overbought on a downtrend. So, this was the perfect setup for sellers, and we did sell this pair.

Technical analysis protected the top side this time for us.

Later in the day, the price headed lower which was a good sign for us. But the tumble last night at the Tokyo open was sort of unexpected. Euro pairs opened lower after failure in political talks to form a governing coalition in Germany.

As a result, EUR/GBP opened with a gap lower and continued lower, so our forex signal here hit take profit. It has reversed back up now as Euro claims all the losses, but we got our pips. Now let’s look for some more.