A while ago, we decided to open a sell forex signal in GBP/USD, as this pair was finding resistance at the 50 SMA on the H4 chart. The price formed a doji candlestick right at that moving average, which is a bearish reversing signal. This moving average has worked as support and resistance for this pair before, so we decided to sell GBP/USD.

But, the main factor has been the petrol issues in the UK. There seem to be some Oil shortages coming from transportation, but the real reason we know is the renewable energy plans from main global institutions, which is going to have a negative impact for the GBP, so we think that GBP/USD will reverse down, hence the sell forex signal.

The UK Petrol Retailers Association warned that fuel is starting to run dry in some areas of the country as delivery problems and panic-buying has resulted in a rather problematic shortage in the past week or so. UK PRA says members reporting 50% to 90% of petrol stations running dry in some areas. It is a bad time for the UK economy to be hit with such a problem.

This is just yet another problem for the economy in general as growth conditions are winding down after peaking during the summer and the ongoing hit to supply chains and capacity constraints have stifled the recovery process going into Q4.