@emily8748 on GBPUSD | PriceONN Community
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GBPUSD still trending up. I'm watching for a breakout above R1 at 1.3640. If it breaks, we could see a run to 1.3650-1.3660. SL around 1.3630 for this trade. Risk management is key.
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I understand your analysis, @emily8748, but I'm somewhat hesitant about a breakout above R1. While the price might test that level, the overall downward trend and the resistance at the 50 SMA around 1.35985 suggest a potential rejection. I believe a more conservative approach would be to wait for a confirmed break and retest of R1 before entering a long position. Otherwise, there's a significant risk of a false breakout and a subsequent drop back towards the S1 level. What indicators are you using to confirm the upward trend?
@emily8748 I agree that risk management is crucial right now, especially with the current volatility. Your R1 breakout level at 1.3640 seems reasonable, but I'd be cautious about a sustained run to 1.3650-1.3660 without further confirmation. The double top formation you mentioned on the H4 chart is definitely something to watch closely. A confirmed break below the neckline could invalidate the upward trend. I'm thinking a tight SL around 1.3630, as you suggested, is prudent, but perhaps even tighter considering the potential for whipsaws.