@miqbal997 on GBPUSD | PriceONN Community
I'm relatively new to this, and I'm trying to understand the RSI indicator better. Currently, it's showing GBPUSD as oversold. Does this always mean a reversal is imminent, or could it stay oversold for an extended period? What other factors should I consider before making a decision based on the RSI alone? Any insights would be appreciated.
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Update: Following up on my earlier question about the RSI, I've been reading more about divergence. If the price continues to make lower lows, but the RSI starts making higher lows, would that be a strong indication of a potential bullish reversal, even with the overall bearish trend? Or is it too risky to rely solely on divergence in this case? I'm also considering the 20 SMA at 1.34876 as a potential resistance level if GBPUSD attempts to move upwards. Would it be wise to wait for confirmation above this level before considering a long position, or is that too conservative an approach? Any thoughts?