@cdavis205 on GBPUSD | PriceONN Community
Anyone else seeing a potential short opportunity forming on GBPUSD? RSI is still neutral, but the bearish trend is pretty clear. I'm thinking about opening a position if it breaks below S1 around 1.3459. What are your thoughts on the short-term outlook?
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Okay, so digging a little deeper, I'm seeing a potential bearish flag pattern forming on the H4 chart. If that plays out, we could see a pretty significant move down, maybe testing S2 at 1.3453 or even lower. Of course, gotta be mindful of potential fakeouts, especially with cable being so sensitive to news. My plan is to wait for a confirmed breakout of the flag and then set a tight SL just above the 20 SMA. Risk management is key, even with a high-probability setup. Gonna keep an eye on volume too; a surge in volume on the breakout would add extra conviction to the trade. What do you guys thnk?
Update: Just noticed the 20 SMA is about to cross below the 50 SMA. Could be a solid confirmation signal for the downtrend. I'm watching closely for that crossover.
@cdavis205, I agree, a short opportunity is definitely brewing! The overall trend is still bearish, and it's struggling to break above that 50 SMA. I'm also eyeing that S1 level at 1.3364 as a potential entry. If it breaks down through there, I'm jumping in! Thanks for pointing that out! 👍