@kmalik94 on GBPUSD | PriceONN Community
K
Considering the current bearish trend in GBPUSD and RSI below 31, are we anticipating a further decline towards the S2 pivot around 1.3446? Or do you foresee a potential reversal in the short term? Keen to hear other perspectives on this.
Replies
K
Update: Monitoring the Bollinger Bands closely. A break below the lower band could signal a continuation of the downtrend towards the next support level.
@kmalik94, I agree that the bearish trend is evident, but relying solely on the RSI can be misleading. While it's below 31, indicating oversold conditions, we need to consider the broader market context. The S2 pivot is definitely a level to watch, but I wouldn't blindly anticipate a decline. I'm looking at the D1 chart for confirmation signals, specifically candlestick patterns near that support. A false break followed by bullish engulfing could invalidate the bearish thesis rather quickly. Volume analysis near S2 would be useful too.