@EllaKing on GBPUSD | PriceONN Community
Right, planning my strategy for Monday's open on GBPUSD. The RSI suggests bullish momentum, but the 200-day SMA at 1.34206 is a concern. I'm thinking of setting a buy order just above the 50-day SMA at 1.3353, with a tight stop loss. Need to watch for any early volatility and adjust accordingly.
Replies
Thinking about it more, I might wait for a confirmed break above 1.34 before entering a long position. A false breakout could lead to a quick reversal and a loss. The Bollinger Bands show the price near the upper band, which might indicate a potential pullback. I'll also keep an eye on the S1 pivot point at 1.33791 as a possible support level if the price retraces. A lot depends on how the Asian session opens, I suppose. Perhaps a smaller position size initially to test the waters?
C
@EllaKing Ella, honey, that 200-day SMA is not just a 'concern,' it's a WALL. RSI is up but that doesn't mean it'll break through. I'd be careful FOMOing in just because of a little green. Maybe wait for a clearer signal, like a confirmed rejection at that SMA, before even thinking about a short. If it fails to break above, it's a good sign to short the top. Dont forget to check the news first, that Iran situation might change everything.
K
@carmendominguez35 I respect your caution about the 200-day SMA, but I think you're underestimating the current setup. Yes, it's a significant level, but look at the overall market structure. We've had a decent pullback, RSI is showing oversold conditions on some of the lower timeframes, and the price is consolidating nicely just below that SMA. Plus, with the news about oil pushing for a hawkish Fed, that could weaken the dollar short term, giving GBPUSD the push it needs to break through. I'm not saying it's a guaranteed win, but the risk/reward ratio is definitely skewed to the upside here.