@oscarcooper on GBPUSD | PriceONN Community
The recent bearish movement in GBPUSD warrants caution. While the RSI suggests a neutral stance at present, the pair is currently trading below the 20-day SMA. A sustained break below S1 at 1.35533 could signal further downside potential, potentially testing S2 at 1.35449. Prudent risk management is advised.
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Update: Monitoring the Bollinger Bands, the lower band around 1.3500 could act as a support level if the bearish trend continues. However, given the volatility, a retracement towards the 20-day SMA is also a possibility. Will be watching for confirmation signals before entering any positions. A break below 1.35 would invalidate my current outlook.
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@oscarcooper Agree on the caution! That S1 level is key. If it breaks, could see a quick drop for sure.
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@oscarcooper I agree with your assessment regarding the recent bearish movement. The fact that GBPUSD is trading below the 20-day SMA is definitely a cause for concern. However, I'm not entirely convinced that a break below S1 at 1.34724 will necessarily lead to a significant downside move. I think there's a strong possibility of a bounce around the 1.3465 level, especially if the RSI starts to show oversold conditions. It's also worth noting that the Bollinger Bands are relatively narrow, which could suggest that a period of consolidation is likely before the next major move. I'll be watching the price action closely around these key support and resistance levels before making any decisions. Prudent risk management is indeed essential in this situation.
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@oscarcooper Thanks for the analysis! I'm still pretty new to this, so trying to understand. What does it mean for risk management if it breaks below S1? Should I be looking to short then, or is it too risky for a noob like me?