Shorting EUR/GBP at the Descending Trend-Line

EUR/GBP has been on a bullish trend since October, on hopes that the Conservatives would win the elections in the UK. They did win a comfortable majority and the GBP surged more than 5 cents higher, sending EUR/GBP more than 2 cents lower that day.

But,the climb ended when GBP traders realised that the UK economy is still weakening, as Carney repeated today and a trade deal between UK and the EU is pretty difficult, as Barnier also repeated earlier today. As a result, EUR/GBP turned higher in the following weeks.

But, in the last couple of weeks, this pair hasn’t been able to push higher and the highs have been getting lower. A trend line has formed, which brought an end to the bullish move this morning, after EUR/GBP bounced off the 100 SMA on the daily chart. We decided to open a sell signal at the descending trend line and the previous H4 candlestick which closed as a spinning top points to further declines.

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 See More
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
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

HFM

Doo Prime

XM

Best Forex Brokers