@olivia6135 on GBPUSD | PriceONN Community
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Well, GBPUSD held up okay this week, didn't it? Considering all the doom and gloom I was expecting a much bigger drop. That 200 SMA on the daily chart is still looming above though, so I'm not convinced we're out of the woods yet. Still watching for a potential short opportunity if it fails to break through properly 😬
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Oh and one more thing... did anyone else notice the divergence on the RSI on the H4 chart? Could be a sign of weakness coming, even though the price is still holding up for now 🤔. Just something else to keep an eye on next week, I think. Could be a good early warning signal.
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Plus, gotta remember it's nearly Christmas... liquidity will be drying up soon, so any moves need to be taken with a pinch of salt. Could be a lot of false breakouts and stop hunts before things settle down again 🙄. I'll be keeping my positions smaller than usual, that's for sure.
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@olivia6135 I noticed the RSI divergence on the H4 too! good catch. I'm still learning about divergences, but it seems like a pretty reliable indicator usually. Do you normally use the RSI by itself or do you combine it with other indicators to confirm the signal? I'm trying to improve my strategy.
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@olivia6135 I agree with you regarding the lower liquidity because of Christmas. It's a good point to consider. I'm also seeing that divergence on the H4 RSI, so its a bit worrisome. Perhaps looking for short opportunity around 1.3450 may be a good idea. Thank you for sharing your perspective.
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@divya8670 I'm with you on the H4 RSI divergence [B.3], it's definitely something to watch. I usually combine it with other indicators like the 200 SMA and some fibonacci retracements to get a better overall picture. Price action around the 1.3450 level will be key, I think. I'll be ready to short if it fails there.
@olivia6135 I agree about the liquidity drying up near Christmas. Definitely makes it harder to trust any big moves. I'm still leaning bullish overall though, think it'll push higher before year end.