Selling the Retrace Up in EUR/GBP Again - Forex News by FX Leaders
Is the pullback up over now?

Selling the Retrace Up in EUR/GBP Again

Posted Wednesday, February 24, 2021 by
Skerdian Meta • 1 min read

The EUR/GBP has been bearish for a few months now, especially picking up pace after the UK reached a trade deal with the EU in December, which opened the door for the Brexit deal. The GBP has been bullish since then, turning this pair bearish as a result.

During this time, moving averages have been doing a great job as resistance indicators, stopping the pullbacks higher and pushing the trend lower for the pair. On the H4 chart above, we can see that the 50 SMA (yellow) was providing resistance for the EUR/GBP.

But, since the middle of February the decline has picked up pace further, and the 50 SMA hasn’t been able to catch up with the price. So the 20 SMA (gray) has taken up that task, pushing the EUR/GBP lower. Today we are seeing a retrace higher after yesterday’s decline, so we decided to open another sell forex signal here. Now let’s wait and see whether the bearish trend resumes again soon.

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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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