Shorting GBP/USD at the Big Level - Forex News by FX Leaders

Shorting GBP/USD at the Big Level

Posted Tuesday, February 27, 2018 by
Skerdian Meta • 1 min read

We just opened a sell forex signal in GBP/USD. I was thinking about shorting EUR/USD, but that forex pair has made quite a reversal from the lows yesterday, so we decided to stick to GBP/USD.

First of all, GBP/USD is showing signs of weakness. While EUR/USD is near the lows of the last several days, GBP/USD is about 100 pips below yesterday’s high. This sort of price action looks bearish.

But, the main reason that we went short on this forex pair is the big level at 1.40. That is a major level. While it has been breached many times above and below, it still acts as support and resistance. As you can see form the h1 chart below, the area around 1.40 has been providing resistance for about a week, apart from yesterday when USD sellers sent this pair higher.

The big resistance level at 1.40 is working today

Besides the big level, we have the 50 SMA (yellow) which is standing just below it. That moving average is doing whatever it can to reverse this pair lower and it seems like it is working.

Another bearish signal is the previous hourly candlestick. As you can see, it formed a doji just below the 50 SMA. The doji is a reversing signal according to the candlestick trading strategy. So, according to these indicators, we decided to go short on GBP/USD.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of