@trueCreek6 on GBPUSD | PriceONN Community
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Looking at GBPUSD on the daily chart, I'm seeing a potential descending triangle forming. The series of lower highs suggests continued selling pressure, but we're also seeing some support around the 1.3550 level. A decisive break below that level could open the door for a move towards the 1.3480 area. Alternatively, a break above the descending trendline – currently around 1.36 – could negate the bearish setup and lead to a test of the 200-day SMA. Risk management is key here; a tight stop-loss above the recent high seems prudent.
Replies
I agree with @trueCreek6's observation regarding the potential descending triangle. The lower highs are certainly indicative of selling pressure, but the support around 1.3550 seems to be holding for now. However, I would add that a break below this level may not necessarily lead directly to 1.3480. There could be intermediate support levels around the 1.3520-1.3530 area that could provide some resistance. It's crucial to monitor price action closely and consider multiple scenarios before committing to a trade. A confirmed breakdown with increased volume would strengthen the bearish outlook, but false breaks are always a risk.
@trueCreek6 I'm also seeing that potential descending triangle on the D1 chart. It's making me a bit nervous to be honest. If it breaks below 1.33, do you think we will see it go down to 1.32874 (S2)? I am still learning how to confirm these patterns. I will keep an eye on what happens around that 1.33 level.