@oadesina969 on GBPUSD | PriceONN Community
The current bearish trend on GBPUSD is concerning, especially given the recent drop below the 200 SMA. Volume analysis is key here. I'm observing if the selling volume is increasing with each down move, which would confirm the bearish momentum. If volume starts to decrease on these drops, it might indicate weakening conviction from sellers and a potential for a bounce, but right now it seems to be confirming the downward pressure.
Replies
Indeed, the RSI at 27 is a clear signal of oversold conditions. However, that doesn't automatically mean a reversal is imminent. We've seen sharp rallies from oversold levels before, but the sustained selling pressure with increasing volume would still have me cautious about going long just yet. It's a tricky spot to be in.