@anjalisingh41 on GBPUSD | PriceONN Community
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Reviewing the weekly close, GBPUSD did show some strength, but I'm not entirely convinced it's sustainable. The pair is still trading below the 200 SMA on the daily chart, which acts as a significant resistance level. Also, with the RSI approaching overbought territory, a correction seems plausible. The news regarding global economic data also signals mixed trends, adding to the uncertainty. I think we should be cautious about expecting a straightforward continuation of the recent bullish movement. I'll be watching for signs of weakness early in the week and may consider opening a short position if the opportunity arises. A measured approach seems prudent given the current volatility.
Replies
@anjalisingh41 I agree that the 200 SMA is a significant resistance level. 🤔 It's definitely something to watch out for. But the RSI being near overbought doesn't always mean a correction is coming. Sometimes it can stay overbought for a while during a strong uptrend. I'm thinking maybe a small pullback to the 50 SMA around 1.3345 and then a continuation upwards? It's alwys so hard to tell 😫
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@anjalisingh41 I agree with your caution about the 200 SMA. It's been a tough level to crack. That RSI level you mentioned is also very important. Maybe wait for a pullback after it gets overbought before considering any buys? Just my 2 cents sha.
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@anjalisingh41, I appreciate your cautious approach regarding the 200 SMA and RSI levels. It's wise to remain skeptical despite any short-term strength. However, I would also consider the possibility of a fakeout. Often, price action will briefly violate such levels to trigger stops before continuing in the original direction. Keep an eye on volume; a surge could indicate genuine bullish momentum, while low volume might signal a trap. Also, with the news regarding Middle East tensions, safe-haven currencies might influence GBPUSD indirectly. A broader risk-off sentiment could weigh on the pound.
@anjalisingh41 I'm also watching that 200 SMA on the daily. It's a key level, but I'm wondering if the recent dollar weakness from the breaking news about the yen might give cable enough juice to break through. Still, I'm being cautious and waiting for confirmation before golong.