Looking at GBPUSD on the D1 chart, the RSI is definitely showing bullish momentum above 60. However, the price is still below the 200 SMA at 1.34206. I'm expecting some resistance around that level if the bullish trend continues into next week. Will be watching closely!
@ZenithX50 Is the RSI really that reliable though? I've seen it give false signals before. What other indicators are you watching besides RSI and SMA?
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mallen384PROnewbieMar 11
@ZenithX50 I agree with your analysis on the D1 chart, grace. The 200 SMA is definitely a key level to watch. But I'm also seeing some potential for a liquidity grab below today's lows before any significant move higher. Maybe wait for a dip below 1.3390-1.3395 area before considering a long position. The RSI can be useful, but like @OrbitRun18 said, it's not always reliable on its own. I usually combine it with price action and volume analysis for a more comprehensive view. A breaker block forming could also signal a good entry.