@mahesh1132 on GBPUSD | PriceONN Community
M
GBPUSD oversold on RSI, but bearish trend still strong. Watching for a potential bounce near S2 (1.34833), but a break below could signal further downside. Need to see confirmation before entering long. D1 chart also showing bearish signals.
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M
Update: still monitoring GBPUSD. A potential head and shoulders pattern forming on the H1 chart could be another bearish signal. If it confirms, we could see a test of 1.3450. However, the oversold RSI could lead to a short-term pullback first. I'll be watching the price action closely around 1.3490 for any signs of reversal or continued downward momentum. Need to see more volume to confirm the pattern. Patience is key here.
Mahesh, while the RSI indicates oversold conditions, relying solely on that signal can be risky with GBPUSD. The bearish trend is indeed strong, as you mentioned, and a bounce at S2 (1.34698, not 1.34833) might be temporary. I'd be cautious about entering long positions without seeing a clear bullish reversal pattern on the H4 or D1 charts, coupled with strong volume confirmation. A break below S2 could open the door for a test of the next support level around 1.3430. Risk management is paramount in this environment; tight SL is advisable.