I'm observing a bearish trend on GBPUSD currently. With the price below the 20-day SMA and RSI below 50, does anyone foresee a further decline towards the S1 or even S2 pivot point levels? I'm curious to hear perspectives on potential short-term entry points given these indicators.
@williamthomas67, I agree that the bearish trend is present, but I'd be cautious about relying solely on the 20-day SMA and RSI. The price action is showing signs of indecision. A break below S1 at 1.34724 could trigger further downside, but consider the proximity of S2 at 1.34651 – not a lot of room there. I'd wait for confirmation from a break of both those levels with increasing volume before committing to a short position. Also, check the D1 chart for support levels that might not be obvious on shorter timeframes.
