As we have mentioned quite a few times recently, EUR/GBP has been bearish since the beginning of this year. The Euro has turned bearish, with EUR/USD losing around 4 cents as it fell below 1.20, while GBP/USD has held up better.

In fact, this pair is around 5 cents up from the beginning of the year, hence the decline in EUR/GBP. EUR/GBP has lost around 7 cents from the top and it has been finding solid resistance at moving averages on the H4 chart during this time.

We have opened quite a few forex signals in this pair, selling it during the retraces at moving averages. We opened a sell signal at the end of last week which closed in profit last night, while we did so again a while ago, as the price retraced higher again. We sold EUR/GBP at the 50 SMA once again and our trade is 10 pips in profit already as this moving average rejects the price again.