Cashing in on Our Short EUR/GBP Signal
Skerdian Meta • 1 min read
The EUR/GBP has been on a bullish trend since the middle of February. This forex pair surged 15 cents higher during that time, as the panic surrounding the coronavirus outbreak in Europe sent the Euro surging. Then the price retreated lower, but the uptrend resumed again in May and this pair has been climbing higher since then.
The speed of the increase slowed down though, which showed weakness on the buyers’ side, but in September, the pace picked up again, as odds of the UK ending up with no Brexit trade deal increased, which hurt the sentiment for the GBP. But the EUR/GBP retreated lower again in the second week of this month.
Last week, buyers were trying to revive the bullish trend again, and the 50 SMA (yellow) was holding as support. But it reversed down again this week, making a lower high. That was another sign that buyers are getting tired, but yesterday, we saw a retrace higher.
However, the 100 SMA (green) held as support, and the price formed a doji candlestick – which is a bearish reversing signal – on the H1 chart. So we decided to open a sell forex signal, which closed in profit overnight, as the Euro continued lower, while the GBP is holding steady.