@stephanie2956 on GBPUSD | PriceONN Community

Hey @stephanie2956, I see what you're saying about a possible short. But tbh, I'm not totally convinced yet. That 20 SMA is pretty close to the current price, so it might not hold as strong support. Maybe wait for confirmation with a break below 1.3430 *and* a retest before jumping in? Just my 2 cents.

@stephanie2956, I agree with your assessment that GBPUSD is exhibiting bearish tendencies. The price action below the 20-day SMA is certainly a factor to consider. However, I'd be cautious about jumping into a short position solely based on that observation. Have you considered the broader context of the 50 and 200 SMAs? The 200 SMA is significantly higher, which could act as resistance in the longer term. Also, the support level you mentioned around 1.3430 is a key level to watch, but I would wait for a confirmed break below that level with increased volume before entering a short position. Perhaps wait for a retest of the broken support as new resistance for confirmation. Good luck with your analysis!

Stephanie, your bearish outlook may be valid. However, it's important to consider multiple indicators before making a decision. While the price is below the 20-day SMA, the RSI is neutral, not oversold or overbought. Also, consider pivot points. S1 support is at 1.34624, so a break below that level would give more confidence to a short position. Are you factoring in news events this week? I'm still learning, so maybe I'm missing something, but it seems premature to short based only on the 20 SMA. What are your thoughts on using pivot points for confirmation? Also, where would you set your stop loss?