@mSmith61 on GBPUSD | PriceONN Community
Looking at GBPUSD, I'm seeing a potential short opportunity forming. The price is currently hovering around the 50-day SMA (1.34835), acting as resistance. A break below 1.3470 could confirm the bearish momentum. Targeting 1.3450 initially, with a stop loss around 1.3490. Let's see how this plays out!
Replies
Further to my earlier post, I'm also watching the D1 chart for confirmation. The 200-day SMA is way up at 1.35893, indicating a strong long-term downtrend. A sustained move below 1.3450 could trigger a larger sell-off, potentially targeting 1.3400. However, keep in mind the risk events this week – any unexpected news could easily invalidate this setup. Risk management is key, so I'm starting with a small position size and will add if the trade moves in my favor. Also, I'll be monitoring the RSI on the H4 timeframe for any signs of oversold conditions as we approach the 1.3450 level. This is crucial for timing my exit or potentially scaling back my position.
Update: Price just broke below 1.3470! Initiating short position. Fingers crossed for a smooth ride down to 1.3450. Keeping a close eye on the RSI to avoid being caught in a fakeout.
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@mSmith61 Your short idea aligns with my analysis. A break below 1.3470 is key. I'd watch the D1 candle close for confirmation.
@mSmith61, I agree with your assessment regarding the potential short opportunity. The 50-day SMA acting as resistance is a key observation. However, I'd also keep an eye on the RSI, which is currently hovering around neutral territory. A confirmed break below 50 on the RSI could provide further confluence for your bearish outlook. Your targets and SL seem reasonable given the current volatility.