The retrace seems complete on the H4 chart

Shorting GBP/USD at the 200 SMA

Posted Tuesday, September 15, 2020 by
Skerdian Meta • 1 min read

GBP/USD turned quite bearish in the first week of September, after being bullish since March and climbing nearly 21 cents from the bottom to the top. The top  came pretty close to the big round level at 1.35 but ended up there, as the decline in the USD stopped.

The situation turned also bearish for the GBP, with Brexit heading towards a no trade deal scenario, which has fueled the downside for this pair during September. GBP/USD lose more than 7 cents from top to bottom during this decline, which was quit strong.

But, we are seeing a retrace higher this week, as the USD weakens again, but the 200 smooth MA (grey) is providing resistance. This moving average provided support during the decline last week, while this week it has turned into resistance, with the price coming form below. Yesterday the 200 SMA rejected the price, today we opened a sell forex signal here, hoping for another rejection.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments