@pooja4649 on GBPUSD | PriceONN Community
Considering the RSI is above 60 and price is hovering around R1 (1.36498), I'm planning a cautious approach for Monday. I'll be watching for a potential breakout above R2 (1.36579) for a long entry. However, a failure to break higher could signal a pullback towards the pivot point. A tight stop-loss will be essential to manage risk effectively.
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Hi @pooja4649, I agree with your cautious approach. 👍 Watching for a breakout above R2 is smart. A tight stop-loss is definitely necessary, especially with GBPUSD's volatility. Perhaps consider also looking at the H4 chart for more confirmation before entering? Just my 2 cents. 😉 Good luck next week! 🍀
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@pooja4649 That's a good, conservative strategy. I'm also a bit wary given the overall market uncertainty. Do you typically use a fixed percentage for your stop-loss, or do you base it on ATR or a specific support/resistance level? I'm trying to refine my risk management and find the best approach for scalping GBPUSD.
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@pooja4649, I agree with your cautious approach. RSI over 60 can be tricky, it's not always a guaranteed overbought signal. I'm skeptical about a breakout above R2 right away. It might be a bull trap. A pullback to the pivot point is definitely possible. I'd watch price action carefully around 1.3500. A tight stop-loss is a must, especially with the current volatility. Are you considering any other indicators besides RSI for confirmation?