Yesterday within the afternoon we determined to promote EUR/GBP , as this pair was retracing increased. EUR/GBP has been fairly bullish since early Might, after ending the 2-month consolidation interval. The Euro has turned bullish throughout this time, which has been retaining the uptrend going for this pair.
However, the upside momentum ended as quickly as July began and we now have seen a pullback decrease for the reason that starting of this month. EUR/GBP retreated 200 pips down however the 200 SMA (gray) held properly as help for the second time on the H4 chart and EUR/GBP bounced off that shifting common.
The worth bounced round 100 pips increased, however the climb stopped proper on the 50 SMA (yellow), which was once help earlier than. So, the 50 SMA turned from help into resistance. The worth additionally fashioned a doji under that shifting common, which is a bearish reversing sign, whereas the pullback was full, so we determined to open a promote foreign exchange sign under the 50 SMA. The worth ultimately reversed again down in a single day, hitting our take revenue goal, so we cashed in on that commerce.