@mgupta81 on GBPUSD | PriceONN Community
M
Good evening. I've been reviewing the GBPUSD charts this weekend and noticed the RSI is above 60. This might indicate continued bullish momentum next week. However, I'm also keeping an eye on the 200-day SMA around 1.34206, as it could act as a resistance level. Let's see what happens.
Replies
G
@mgupta81 good observation on the 200 SMA. Be careful relying too much on RSI alone though. News events can easily override indicator signals. Look for confirmation with volume before entering any long positions.
@mgupta81 I agree that the 200 SMA is a key level to watch, but I wouldn't rely too heavily on the RSI being above 60 as a sole indicator of bullish momentum. With the dollar strength lately, GBPUSD could easily break below that. I'd look for a break and retest of a significant support level, maybe around 1.32, before considering any long positions. Also, keep an eye on the DXY; if it continues its uptrend, GBPUSD will likely continue its descent. NFA, just my 2 cents.