Booking Profit on Our Sell Position in GBP/USD - Forex News by FX Leaders
The 50 SMA reversed GBP/USD lower

Booking Profit on Our Sell Position in GBP/USD

Posted Monday, June 29, 2020 by
Skerdian Meta • 1 min read

Earlier this morning I was looking at GBP/USD as it was retracing higher on the H1 chart and decided to open a sell position. This pair fell to 1.215 at the end of last week, as markets turned bearish on the GBP ahead of the weekend, breaking below this month’s lows.

So, the pressure was on the downside last week and the lows had been broken, which was another sign that sellers were in control. Although, this morning we were witnessing a pullback on the H1 chart and GBP/USD got pretty close to the 50 SMA (yellow).

The price formed an upside-down hammer below that moving average, which was a bearish reversing signal after the retrace. The pullback was also complete on this time-frame chart, so we decided to open a sell position in this pair. The climb ended and the price reversed, so we booked profit on that signal as GBP/USD declined, which is now 100 pips lower. The trend has turned bearish now, so we will try to pick other retraces higher and sell them.

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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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