@adebola1988 on GBPUSD | PriceONN Community
Weekend thoughts on GBPUSD... with the market closed, I'm a bit worried about a gap opening on Monday. The price closed near R1 at 1.36499. A big gap up could invalidate my current analysis, but a gap down would present a buying opportunity. Need to be ready for both scenarios. What's everyone else expecting?
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Update: I'm thinking of setting a buy order slightly below S1, around 1.3635, in case there's an initial dip. A tight SL will be crucial to manage risk if the gap fills quickly.
G
@adebola1988, the concern about a gap opening is valid, especially given the proximity to resistance levels. Instead of focusing solely on the gap direction, consider the price action *after* the gap fills (if it does). Look for candlestick patterns near the gap to help confirm your entry. Monitoring volume during the initial hours of trading can also provide valuable insights into the market's sentiment following the gap.
A
@adebola1988, your concern about a gap opening is valid, especially with the weekend news flow being unpredictable. Given the current bearish signals, a gap down towards S2 at 1.34767 might be more probable than a gap up. Prepare to reassess your analysis based on the actual opening price and subsequent price action. Risk management is key.
R
Interesting thoughts @adebola1988. I agree that gap openings can be concerning, especially with overnight news. However, relying solely on gaps for trading decisions can be risky. It is better to consider the overall trend and use price action to confirm any potential entry or exit points after the gap fills or continues. Just my two cents.