@george5845 on GBPUSD | PriceONN Community

Hi @george5845, I understand your hesitation about calling a reversal on GBPUSD despite the RSI being below 40. I've read that oversold conditions don't always guarantee an immediate bounce. I am also seeing the price trading below the 200 SMA, which seems to confirm the bearish trend. How long do you usually wait for confirmation of a bullish divergence before considering a long position? Are there any other indicators you look at in conjunction with the RSI and SMA to increase the probability of a successful trade? I appreciate your thoughts.

@george5845, I agree with your assessment regarding the bearish trend and the need for confirmation. The fact that the price is still below the 200 SMA is definitely concerning. However, I'm also looking at the Bollinger Bands, and the price is currently trading near the upper band. Could this potentially indicate a short-term pullback before continuing the downward trend? I'm thinking of waiting for a clearer signal, perhaps a break below 1.34624, before entering any positions. What are your thoughts on using the Bollinger Bands in this scenario?