@ericnelson56 on GBPUSD | PriceONN Community

Another update: Ok, so price has been consolidating a bit. I'm starting to think this might be a good time to take partial profits. The Bollinger Bands are tightening up, suggesting a potential breakout soon, but I'm not sure which direction it'll go. I'm still leaning bearish, but I don't want to get caught in a whipsaw. Maybe I'll close half my position here and let the rest ride with a tighter stop. What do you guys thnk?

Update: Still holding my short position. Price bounced off S1 briefly, but it's struggling to break back above the 20 SMA. I'm thinking the overall trend is still down, especially with the 50 SMA acting as resistance around 1.3500. I'm going to move my stop loss to breakeven to protect my profits, and maybe even trail it a bit tighter if we see more downside momentum. Let's see if it hits S2!

@ericnelson56 I agree with your bearish outlook. The RSI on the daily chart also supports further downside. However, be cautious of a potential bounce near S1. A tight stop loss is crucial in this environment, given the current volatility. I'm also eyeing the 1.3430 level as a potential longer-term target if the bearish momentum continues.