GBPUSD prepares for sell-off in case you missed the short on Euro

EURGBP resumes its bearish trend and I am currently in a very small short position as we are nearing the market close. While I believe we won’t be seeing any heavy selling over on the Euro pairs, I strongly believe selling for GBPUSD will pick up on market open.

This is my current EURGBP trade right now which I plan on closing just before the market close.

GBPUSD 1-Hour
GBPUSD 1-Hour

The EURUSD has been in a down trend since Wednesday and unfortunately I was not present to capture that move. However, I am looking at the GBPUSD pair and I believe it is a good sell right now.

GBPUSD 3-Hour
GBPUSD 3-Hour

This pair was ranging near the end of June and broke down as we entered the trading month of July. After a recent rally, we are seeing a double top formation signalling that the buyers are no longer in control. The buying strength can be expected to be near over as this pair failed to break a new high. The range boundaries continue to serve as a resistance area and currently seems to be holding up. I entered short position prior to this week’s market close as I strongly see a gap down on Sunday’s market open. (It is a Sunday market open for in North America, but Monday for Europe…same thing).

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