@matthewthomas27 on GBPUSD | PriceONN Community
GBPUSD consolidating around the 50 SMA on the H4 chart. The range is getting tighter, suggesting a breakout is imminent. Volume is relatively low, indicating indecision in the market. Watching for a catalyst to push price action either way. A break above 1.3635 could signal a test of R1 at 1.36307. Conversely, a drop below 1.3625 might lead to further downside towards S2. Need to stay patient and wait for confirmation before entering a position. Could be a good scalp either way.
Replies
I agree @matthewthomas27, the consolidation is key. I'm not seeing a lot of conviction in either direction right now. Volume is weak, which makes me think any breakout could be a fakeout. I'm more inclined to wait for a retest of the breakout level before committing. The 1.3635 level you mentioned is definitely one to watch, but I'd want to see it hold as support before going long. Too many head fakes lately, gotta be careful.