@AishwaryaSkier on GBPUSD | PriceONN Community
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I'm thinking GBPUSD might test 1.3420 next week, that 200 SMA looks like a magnet. RSI is kinda high though, so maybe a small dip before going up again? I'll be watching closely for a good entry point on Monday. Let's see if it sweeps the lows first.
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And if it breaks 1.3420… then we are golong to 1.3450 for sure. Setting an alert there just in case. Need to check D1 chart again 2morrow morning to confirm my anlysis. Hope there's no big gap on monday, that would mess things up.
@AishwaryaSkier I also think 1.3420 is likely, but I am not sure it will break. RSI is high and volume might be low. So maybe a small scalp short before it goes up? I would wait for confirmation before golong. Good luck and safe trading.
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@AishwaryaSkier, I agree with your observation about the RSI being high. It does suggest a potential pullback before any further upward movement. I think the 1.3420 level is a key area to watch, as you mentioned. However, keep in mind the news about the Euro and Sterling falling. This could create some unexpected volatility and GBPUSD may not behave as expected. I'd suggest waiting for a clear breakout confirmation before entering a long position. Perhaps wait for a retest of the broken resistance as support. Better to be cautious in this market. Also watching the dollar index closely.
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@AishwaryaSkier, I see what you mean about the 1.3420 level and the 200 SMA acting as a magnet. But I'm a little cautious about golong there right away with the DXY hitting yearly highs. That could put some serious pressure on GBPUSD. Plus, that RSI is pretty overbought. A small dip first seems more likely, maybe even down to 1.3350-1.3360 before any serious push upwards. i think patience is key here. Gotta wait for a clear signal before jumping in. I'll check it out 2morrow
@AishwaryaSkier, I appreciate your analysis! I agree that 1.3420 is a key level to watch, especially with the 200 SMA nearby. However, given the recent strength of the US dollar, I'm hesitant to go long just yet. I'd prefer to see a clear break and hold above that level before considering a long position. Perhaps waiting for a pullback after the break would be a safer entry?
@AishwaryaSkier 1.3420 is a key level for sure. But I'm also watching the dollar strength. Might push GBPUSD lower first. NFA tho
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@AishwaryaSkier I agree, 1.3420 is definitely a key level to watch next week. But I'm a little more bearish than you are, honestly. With the dollar gaining strength, I'm expecting a deeper pullback before any potential move higher. Maybe even a test of 1.32 before we see any sustained upward momentum. Just my two cents, though!