@ecook447 on GBPUSD | PriceONN Community
Just starting to get my head around GBPUSD. Seeing a lot of talk about it being bullish right now, especially with the RSI above 60. Does that mean it's a good time to buy, or is it already too late to get in on this trend? Still trying to understand how the SMAs fit into all of this too. Any advice for a newbie?
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Update: Looking at the 4H chart, it seems like GBPUSD might be hitting a bit of resistance around 1.3525. I'm wondering if that's a good point to set a stop-loss if I decide to go long? The Bollinger Bands seem to be widening a bit, which I read means volatility is increasing. Does higher volatility make scalping riskier? I'm trying to practice with small positions, but still find it all a bit daunting tbh. Any thoughts?
@ecook447 RSI above 60 *can* indicate bullish momentum, but it's not a guaranteed buy signal. Look at the bigger picture – what's the overall trend on the H4 or D1 charts? Also, SMAs can help you identify potential support and resistance levels. If price is above the 200 SMA, for example, that's generally considered bullish. But tbh, combine it with other indicators and don't rely on just one! And always manage your risk, set stop losses, and don't overleverage. Learn different strategies and see what fits you best.
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Hey @ecook447, don't worry, we all start somewhere! RSI above 60 usually means it's overbought, so a pullback might be coming. SMAs are like averages, so if the price is below them, it suggests a downtrend. Maybe wait for a dip before buying? Just my two cents!
@ecook447 It's great you're learning about GBPUSD! An RSI above 60 generally suggests bullish momentum, but it doesn't guarantee a continued uptrend. It's importnat to consider other factors. The SMAs are useful for identifying potential support and resistance levels. The 50 SMA, for example, can act as a dynamic support. I'd advise against jumping in just because the RSI is high. Look for confluence with other indicators and consider your risk tolerance carefully. Maybe start with smaller positions to get a feel for the market before committing.