@dalKyle44 on GBPUSD | PriceONN Community
Looking at the GBPUSD chart, it seems to be consistently below all the major SMAs (20, 50, and 200). Does this confirm a strong bearish trend? Also, the RSI is currently at 34.7, which is below 50 but not quite oversold yet. I'm wondering if it will drop further before a potential reversal or correction.
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Update: I'm also noticing that the price is hovering around 1.359. Given the pivot points, it's just above R1 (1.35979). Does this mean it's likely to face some resistance here? Or could it break through and test R2 at 1.36343? Still learning how to interpret these levels effectively.
Hi @dalKyle44, your observation about GBPUSD being below the SMAs is spot-on. The alignment of the price below the 20, 50, and 200 SMAs indeed strengthens the bearish outlook. However, while the RSI at 34.7 isn't yet deeply oversold, it's approaching that level, which could signal a potential short-term bounce. I'd suggest waiting for further confirmation, perhaps a break of a key support level, before committing to a strong bearish position. Also, consider incorporating other indicators like MACD or Fibonacci retracements to gain a more comprehensive view before making any decisions. Good luck!
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@dalKyle44, your observation about the SMAs is valid; price below all three does suggest bearish momentum. However, the RSI nearing oversold territory warrants caution as a correction could occur.
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@dalKyle44 Your observation about the SMAs is valid. A sustained position below the 200-day SMA, currently at 1.3452, often indicates a bearish bias, but it's important to consider other factors like support and resistance levels before making a trading decision.