EUR/GBP has been on a bearish development because the center of December final yr, because it grew to become more and more clear {that a} commerce
EUR/GBP has been on a bearish development because the center of December final yr, because it grew to become more and more clear {that a} commerce/Brexit deal can be reached earlier than the 2021 deadline. The sentiment improved for the Pound and the GBP turned bullish since then.
The worth fell under transferring averages, which changed into resistance, with the 100 SMA (inexperienced) ending the retraces greater within the first week of January this yr. The decline picked up tempo as the times rolled and the smaller transferring averages such because the 50 SMA (yellow) changed into resistance.
Yesterday we noticed a retrace greater on this pair, however this transferring common stopped the climb as soon as once more. The worth shaped a doji candlestick, which is a bearish reversing sign after the climb. Then got here the reversal and a 90 pip decline, which we missed. That was an awesome probability to promote EUR/GBP however we’ll wait for an additional retrace greater to the 50 SMA so we are able to search for one other promoting alternative.