@jbrown884 on GBPUSD | PriceONN Community
I'm noticing a potential descending triangle forming on the GBPUSD chart, particularly on the H4 timeframe. The series of lower highs suggests increasing selling pressure, while the support level around 1.3400 seems to be holding for now. If that support breaks, we could see a significant move downward. I'll be watching closely to confirm the breakout before considering a short position.
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To add to my previous post, the volume has been decreasing as the triangle has been forming, which often indicates a lack of conviction in either direction. A strong surge in volume accompanying the breakout would lend more credence to the move. Also, I'm looking at the 200 SMA on the daily chart; it's currently around 1.3380, which could act as a significant support level if the price falls through the triangle's support. If it breaks 1.3400 and then 1.3380, I'd feel a lot more confident in a short position. I'm going to set an alert for a break of the 1.34 level.