@aoladipo941 on GBPUSD | PriceONN Community
This GBPUSD drop is wild! RSI is absolutely hammered down to 28, screaming oversold. I think we're due for a bounce here, especially with that German inflation news potentially making the ECB a bit more hawkish. I'm looking for a move back up towards 1.3250 at least. We've got to catch this falling knife!
Replies
Actually, I just checked the news again and that Euro inflation surge could mean the ECB is going to be very aggressive with rates. That might strengthen the Euro and drag GBPUSD down further if the Bank of England doesn't keep pace. So maybe I was too quick to jump on the oversold signal. This market is a beast and you never know when another headline will flip everything. Still think there's a bounce coming, but the risk of another leg down is definitely there if that inflation data really rattles the EU. Need to be careful not to get caught on the wrong side of a big move. Maybe I'll just scalp it for a few pips for now instead of holding for a big swing.
M
@aoladipo941 dude, oversold? The RSI is barely at 55, that's not screaming anything! You want to talk oversold, look at it when it's below 30. You're seeing a bounce where there's just choppy sideways action with maybe a slight bullish lean towards R1. This whole German inflation thing is overblown for GBPUSD right now, focus on the technicals. We're above the 20 and 50 SMAs, and the overall trend on the New York session has been upward. If anything, I'm looking for a break above R1 and then we can talk about bigger moves. Forget 1.3250, aim higher or sit out if you're just chasing minor bounces on a weak RSI signal. This is where the real money is made, on the momentum, not on wishful thinking.
E
@aoladipo941 I understand your sentiment about the oversold RSI, but I'm not sure about a bounce just yet. This geopolitical tension from the Iran news is really making the USD stronger, and that tends to pull down pairs like GBPUSD. Plus, if that Euro inflation is as high as they're saying, the ECB might have to get very aggressive, which could further weaken the pound against a stronger euro. I'd be cautious about calling a bottom here.