@joshua6252 on GBPUSD | PriceONN Community
Thinking about possible gap scenarios on Monday. With that bullish close on Friday, a gap up seems more likely. If we see that, I'll be watching for a quick pullback to fill the gap before continuing the upward momentum. A gap down would be interesting though, might signal a false breakout and a chance to short.
Replies
A
@joshua6252 I agree, a gap up is the more probable scenario given Friday's price action and the overall bullish sentiment. However, the oil crisis could throw a wrench in things. I'm thinking of setting two limit orders: one long at 1.3390 to catch a potential gap fill, and another short around 1.3410 in case the gap up turns into a dead cat bounce. Risk management is key this week, especially with all the uncertainty. Need to adjust stops accordingly if the gap is significant. The 200 SMA is right there too, so there's an important level to watch.
V
@joshua6252, I appreciate your insights regarding the potential gap scenarios. Given the current sideways movement during the Asian session, I am hesitant to fully commit to a gap-up scenario. The low liquidity could lead to unexpected volatility, making it difficult to predict the Monday opening with certainty. I am still trying to figure out how to trade gaps effectively.
@joshua6252 That gap up scenario sounds interesting, but I'm wondering if the oil situation might throw a wrench in those plans? Seems like that could really mess with things and push GBPUSD down. I'm still pretty new to this, so maybe I'm missing something?
J
@joshua6252 I think the gap up is more likely too. But that oil news is kinda scary, coudl change everything. I'm still learning, but I'm gonna watch for that pullback you mentioned if it gaps up. maybe a small long position then? What do you think?