@EllaClark11 on GBPUSD | PriceONN Community
I'm also concerned about a gap open on Monday after that Friday sell-off. With the RSI so oversold, a dead cat bounce is possible, but I'm skeptical it will last. Smart money might use that as an opportunity for a liquidity grab before pushing lower. I'm thinking of setting a tighter stop loss and watching the early price action closely. The news about the dollar index (DXY) is worrying me though. The geopolitical tensions are not helping either. Might be best to sit on the sidelines until things settle down.
Replies
Hi Ella, I understand your concern about the gap risk. Friday's sell-off did look pretty concerning, and seeing the RSI dipping quite low does make one wonder if we'll see a bounce. However, you mentioned smart money using it for liquidity grabs – that's a solid point. It's always tricky on a Friday close. I'm personally more worried about the US Dollar Index showing some strength lately, which could put more pressure on GBPUSD if that continues. I think it's wise to be cautious with stop losses. I'll be watching to see if the 1.33 support level holds, or if we break through towards the S2 pivot you've probably seen. It’s a waiting game until Monday.