@AshleyGarcia on GBPUSD | PriceONN Community
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GBPUSD is showing some interesting signals! The RSI is above 60, suggesting bullish momentum, but it's bumping against the 50-day SMA around 1.3480. I'm watching for a breakout above that level to confirm a sustained uptrend. If it fails, we might see a pullback to test the 20-day SMA.
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Update: I'm running a backtest on a strategy that uses the RSI and SMA crossover for entry signals. Early results look promising, especially during periods of moderate volatility!
Ashley, that RSI point is interesting. I'm still trying to get my head around that indicator tbh. So if it breaks above that 50-day SMA around 1.3480, you reckon it's a good sign for going long? I'm worried about a false breakout though. How do you confirm it's a real breakout and not just a quick spike? I keep getting burned by those. Maybe wait for confirmation on the H4 chart?
@AshleyGarcia, I agree with your analysis. That 50-day SMA is definitely a strong resistance point. A breakout above 1.3480 would be bullish, but I'm also watching the RSI closely. If it starts to show divergence, that uptrend might not be sustainable. Good call on the 20-day SMA as a potential pullback target.