@edward2520 on GBPUSD | PriceONN Community
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Okay, so I'm thinking about a potential short position on GBPUSD if it breaks below S1 at 1.35529. 🤔 My reasoning is that the overall trend seems bearish, and the price is struggling to break above the 20 SMA. I'm still a bit new to this, so I'm not sure about my TP and SL levels. Maybe a TP around 1.3540? What do you guys think? I'll keep an eye on the RSI too. If it goes over 50 then i'll defo reconsider. Any advice on how to set appropriate risk management for this trade? 🧐
Replies
@edward2520 I wouldn't be so sure about a short just yet. The 20 SMA is acting as support for now, and we might see a bounce. Maybe wait for more confirmation? 🧐
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@edward2520, I'm not sure about shorting below S1... seems a bit risky with the current volatility. Maybe wait for more confirmation? Just my two cents!
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@edward2520, I agree that the overall trend appears bearish. However, basing your short entry solely on breaking S1 might be risky. The price could easily bounce off that level. Consider waiting for a confirmation candle below S1 or looking at other indicators like the MACD to confirm the downward momentum. Also, think carefully about your risk/reward ratio. A tight stop-loss could get triggered by volatility, while a wide one might limit your potential profit. Personally, I would prefer to see the price breaking 1.3270 before entering short.