EUR/GBP has been very predictable. It turned bearish at the middle of August and since then the traffic has been one way only. This pair has lost around 800 pips from top to bottom and   now the price is trading near the bottom. During the decline, moving averages have been doing a good job in providing resistance during pullbacks and pushing the price lower.

We have had quite a few trades playing out well during this decline. Almost all of our trades here have been sell signals, obviously. We have been selling retraces to moving averages, especially during the last week of October and this month.

The 50 SMA (yellow) has been providing solid resistance during the last month or so, so many times. When buyers have pushed above it, the 100 SMA (green) has taken its place, reversing the price down. yesterday we saw another retrace higher on the H4 time-frame chart, after one poll showed a narrowing lead for Conservatives in the UK, which hurt the sentiment surrounding the GBP a little.

But, the 100 SMA held strong once again and after a few small doji candlesticks, this pair reversed back down. We missed that opportunity, but I can’t beat myself up too much about it, since the reversing chart setup formed during the nights. Anyway, this is the picture in EUR/GBP and pullbacks to the 50 or 100 SMAs should offer some great selling opportunities.