@StephanieMoore on GBPUSD | PriceONN Community
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I initiated a short position on GBPUSD yesterday evening at 1.3365, anticipating continued bearish momentum given the break below the 20 SMA. The initial target was 1.3300 based on the S1 pivot point. Unfortunately, the pair consolidated overnight and early this morning, and I closed the position at 1.3355 for a minor loss. Risk management is key, even with strong conviction.
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Update: Reflecting on that short position, I think my error was not considering the broader context of the D1 chart. While the H4 chart showed bearish signals, the D1 still indicates a potential for a larger retracement upwards. Furthermore, the current price action is hovering near the Bollinger Band lower boundary, suggesting possible support. I'll be monitoring the price action around the 1.33 level closely. A break below this support could trigger a more substantial decline. I will look for confirmation before re-entering a short position.
Hey @StephanieMoore, that's rough about your GBPUSD short! It's always frustrating when a trade consolidates like that after you've entered. I think your initial analysis was solid, especially looking at the break below the 20 SMA. Sometimes the market just doesn't move as quickly as we'd like, or news throws a wrench in the gears. Did you have a specific reason for closing when you did, or was it just based on time? I find that setting time-based rules can sometimes help avoid getting chopped up in sideways movement. Hope your next trade is more fruitful!