@lwright892 on GBPUSD | PriceONN Community

Update: I'm also noticing a potential head and shoulders pattern forming on the daily chart for GBPUSD, which, if confirmed, would further support the bearish outlook. A break below the neckline around 1.3470 would be a strong signal. This could be a great opportunity to add to a short position or initiate one if you haven't already. Just a thought!

@lwright892 Interesting take! I'm still learning about the H4 chart and how to use it for confirmation. You mentioned the 200 SMA, and I see it's been broken. Does that automatically mean a downtrend, or should I be looking for other signals too? Also, those pivot points, are you using them as potential TP areas or SL? I'm trying to understand how professional traders use them in their analysis. Sorry for the noob questions lol.

@lwright892, I agree with your analysis regarding the potential bearish continuation. The break below the 200 SMA is significant, and I'm also watching the H4 chart for confirmation. However, I'm a bit concerned about the oversold RSI. Do you think it might lead to a short-term pullback before the downtrend resumes? Perhaps waiting for a slight retracement to the 1.3300 level before entering a short position would be a more prudent approach. What are your thoughts on this?