@grayMoss3 on GBPUSD | PriceONN Community
My analysis suggests we're likely to see continued bearish pressure on GBPUSD in the short term. The price is currently below the 20 and 50 period SMAs, and RSI is trending downwards, currently at 40.4. I'm watching for a potential break below S1 at 1.34326, which could open the door to further declines towards S2 at 1.34226.
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Further to my previous comments, it's important to consider the broader economic context. With the dollar strengthening and uncertainty surrounding the UK economy, the path of least resistance for GBPUSD appears to be downwards. While a short-term bounce is always possible, I believe any rallies will be limited. Pay attention to news releases and potential interventions by central banks, as these could significantly impact price action. Also, keep an eye on the Bollinger Bands; a move outside the lower band could indicate oversold conditions and a potential reversal, but for now, the trend seems clear. I am still biased to the short side.
Update: A decisive break below 1.3430 would confirm the bearish trend. I'll be looking for a potential short entry around that level, with a stop-loss just above the pivot point at 1.3452. Initial TP would be S2 at 1.34226, and then potentially lower if the momentum continues.
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@grayMoss3, I agree that the short-term pressure appears bearish based on the SMAs and RSI. However, the recent bullish close complicates the picture somewhat. While a break below S1 at 1.33791 could indeed open the door to further declines, it's also possible we see a bounce from that level, especially considering the RSI isn't yet oversold. I'd suggest waiting for confirmation before committing to a short position. Perhaps look at the H4 chart for additional clues regarding potential support levels. A decisive break below S1 on the H4 timeframe with increasing volume would strengthen the bearish case. Otherwise, a false break could present a good long opportunity.