Missed the Chance to Sell GBP/USD but the Plan Stays the Same, Sell the Retraces - Forex News by FX Leaders
The downtrend continues to stretch further for GBP/USD

Missed the Chance to Sell GBP/USD but the Plan Stays the Same, Sell the Retraces

Posted Friday, May 31, 2019 by
Skerdian Meta • 1 min read

GBP/USD turned bearish at the beginning of this month and it looks like it will close the month on a bearish footing. So far this pair has lost 600 pips from the top at the start of May and from the price action of the last couple of hours, it seems like the decline will stretch further to the downside.

During this time, the trend has been obvious and the retraces higher have been pretty shallow with the biggest retrace taking place at the end of last week when this pair retraced nearly 150 pips higher. Although, that was due to some increased USD weakness which came after the soft economic reports form the US.

The last retrace took place this morning but it ended at one of the moving averages as it has done many times during this downtrend. This time it was the 50 SMA which provided resistance on the H1 time-frame. The price formed a small upside-down hammer just below that moving average and it turned bearish again from there. So the trade plan remains simple for this pair – sell the pullbacks at the 50 SMA and wait for the bearish trend to resume.

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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.
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