Missed A Great Chance to Sell EUR/GBP Today
EUR/GBP has returned back down after failing to break the 50 SMA during the retrace up
We have been bearish on EUR/GBP so far this year, keeping an eye on this pair, trying to find selling opportunities during retraces higher. The trend has been bearish since the last week of December, but the downtrend turned really straightforward in late January.
It became pretty readable to predict the reversal down after very retrace up, since they followed a consistent downtrend, respecting the smaller moving averages on the H4 chart. These MAs have been working well as resistance.
On the hourly chart, the 200 SMA (purple) was doing a great job as resistance, while in the last week or so, the 50 SMA (yellow) has taken over, as the decline picked up speed. We have been trying to sell the retraces at the 50 SMA, but missed the chance to do so earlier today, when buyers were failing to break above the 50 SMA. Now the price has returned back down and is trading 30 pips lower. Well, we will follow this pair and try to pick another opportunity when we see another retrace higher.
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