@painterKavita on GBPUSD | PriceONN Community
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Considering a potential short position on GBPUSD. The price is currently below the 20, 50, and 200 SMAs, indicating a bearish trend. RSI is showing oversold conditions, but the overall momentum seems to be downward. A break below S2 pivot at 1.34891 could confirm the downtrend, with targets around 1.3470.
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Update: Monitoring price action around 1.3490. If it consolidates below this level on H4, I will enter short with SL above the 20 SMA. Targeting S3 pivot level.
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@painterKavita I agree, the break below S2 at 1.34891 is a key level to watch. However, be careful of a potential fakeout given the oversold RSI. Maybe wait for a confirmation candle before entering a short position?
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@painterKavita, your analysis makes sense, but are you sure about the oversold RSI? It's around 55 right now, which seems pretty neutral to me. I'm still pretty new to this, so maybe I'm missing something. Wouldn't a break *above* 1.35 be bullish, not bearish?
@painterKavita I think your idea for a short position is pretty solid, especially with the SMAs lining up like that. But yeah, that RSI being oversold is a bit of a concern. Maybe wait for a confirmation candle after the break of S2 before entering? Also, considering the news, the initial reaction might be a bit unpredictable. A tighter SL might be a good idea just in case. I'm also watching the pair, but I'm still on the fence about direction. Good luck with your trade!