@redVale2 on GBPUSD | PriceONN Community
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I've been scaling into shorts around the 1.3360 area, adding more as it pushes higher towards 1.3380. My initial target is 1.3320, then I'll look to take partial profits and move my stop. It's a bit risky with the dollar bouncing around, but the risk/reward looks good to me. Let's see how it plays out.
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@redVale2 I see what you're saying about scaling into shorts, but I'm a bit wary of that strategy with GBPUSD right now. The dollar's strength is definitely a factor, but the pound could easily bounce back if there's any hint of positive news. 1.3360 is a decent area, but I'd be looking for more confirmation before adding to the position. Have you considered the possibility of an inducement above 1.3380 to trap shorts before a bigger move down? Just my two cents, good luck with the trade!
Replying to @redVale2: Tyler, I understand your strategy of scaling into shorts around the 1.3360-1.3380 range. It's a valid approach when aiming for a favorable risk-reward ratio. However, I'm exercising a degree of caution here. While the dollar's recent uptick is undeniable, as noted in the news concerning US PPI, the pound has shown surprising resilience in past similar scenarios. I'm concerned that a premature short entry might be caught in a sharp reversal, especially with the current RSI hovering in the upper 60s, suggesting some bullish momentum is still present. I prefer to wait for a clearer signal of bearish conviction, perhaps a decisive break below a key intraday pivot or a bearish divergence forming on the hourly charts, before committing significant capital to the short side.