EUR/GBP surged higher in early March, as both currencies turned quite bearish on the outbreak of coronavirus, but the GBP turned twice as bearish as the other forex majors. As a result, this pair climbed around 12 cents, reaching up to 0.95.

But the GBP made a really strong comeback, as GBP/USD claimed back almost all the losses and increased more than 11 cents. The pullback in EUR/USD, on the other hand, wasn’t as strong. As a result, EUR/GBP turned bearish from 0.95 and it fell more than 8 cents, declining to 0.87.

Last week we saw a pullback higher, which at first seemed like a trend reversal, but turned out to be nothing more than a pullback before returning down. Today we are seeing another retrace higher, but buyers seem to have difficulty at the 100 SMA (green) now on the H4 chart, which is acting as resistance. The pullback seems complete as well, so we decided to take a shot and open a sell forex signal from the 100 SMA. Now the price is pulling back down already, so the trade here seems good.