@NicoleJ56 on GBPUSD | PriceONN Community
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Anyone else watching the 50 SMA on GBPUSD? It's right around 1.3630. A break below that could signal more downside. I'm running some backtests to see how price has reacted to that level historically. Will post if I find anything interesting. What are your thoughts on this level?
Replies
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Interesting observation, @NicoleJ56. I'm also watching the 50 SMA. A sustained close below that level, combined with bearish confirmation from other indicators, could signal a potential short opportunity. Have your backtests revealed any reliable patterns associated with that SMA level?
@NicoleJ56, I've also been watching that 50 SMA level closely. Your backtesting idea is a good one. From my own analysis, I've noticed that a sustained break below the 50 SMA often leads to further declines, but it's not always a clean break. There can be false breakouts, so confirmation is key. I'd suggest looking at the RSI and MACD in conjunction with the SMA to get a more complete picture. A bearish divergence on the RSI could strengthen the signal. I'll be watching for that next week.