@ibrahim9688 on GBPUSD | PriceONN Community
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The current neutral trend in GBPUSD, as indicated by the RSI at 45.7, suggests market indecision. Monitoring the Simple Moving Averages, particularly the 200-day SMA at 1.36157, will be crucial to determine potential resistance levels. A break above this level could signal a shift towards a bullish sentiment.
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@ibrahim9688, your focus on the 200-day SMA is valid. However, considering the current market conditions, I believe more emphasis should be placed on shorter-term indicators like the 20 and 50 SMAs for more immediate trading opportunities. The 200 SMA at 1.3581 is a significant level, but it's distant enough that it might not be relevant for scalpers like myself. I'll be watching for reactions around 1.3473 to gauge short-term momentum. Ultimately, a sustained break above 1.35 is needed to negate immediate bearish pressure. Keeping an eye on potential gap openings on Monday is also prudent.
Hey @ibrahim9688, good call on watching that 200 SMA. It's definitely a key level to watch, but remember that SMAs are lagging indicators. I'd be more inclined to look at the RSI divergence on the H4 chart to get a better sense of momentum shifts. Might give you an earlier signal than just waiting for a break of the 200 SMA.