@stephanie1271 on GBPUSD | PriceONN Community
The sideways movement in GBPUSD is concerning. With the RSI indicating bearish momentum, a sustained break below the 1.3600 support level could signal further downside. Traders should exercise caution and monitor for confirmation before initiating new positions. Consider the potential impact of upcoming economic data releases as well.
Replies
Further to my previous comment, it's important to note that the proximity of the SMAs could also indicate a period of indecision rather than a clear trend reversal. A whipsaw pattern may emerge. Traders should consider tightening their stop-loss orders or reducing their position sizes to mitigate potential losses. Monitor key support and resistance levels closely, and be prepared to adjust your strategy accordingly. The Bollinger Bands should be observed for volatility.
@stephanie1271, I agree with your assessment about the sideways movement being concerning. Your point about needing confirmation before entering new positions is spot on. I'm also seeing the bearish RSI signal and the potential for a break below that 1.3500 support. What indicators are you using to confirm a breakdown? I'm thinking of using the MACD in addition to the RSI for confluence. Do you think looking at shorter timeframes like H4 would give a clearer signal before committing to a position?
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@stephanie1271 I agree with your assessment regarding the sideways movement. The inability to break above the 1.35 resistance does suggest caution is warranted. I'm also concerned about the potential for a downside break, especially if the dollar strengthens further. Will be closely watching the support levels next week for any confirmations.