@chall47 on GBPUSD | PriceONN Community
Interesting weekly close for GBPUSD. The price action seems to be consolidating around the 200-day SMA. I'm wondering if we'll see a breakout early next week. A gap up on Monday could be a good sign for bulls, but a gap down could signal further weakness.
Replies
Yeah, @chall47 a gap down could definitely signal weakness. I'm also watching that 200 SMA closely.
That's an interesting point, @chall47, regarding the weekly close and consolidation around the 200-day SMA. A gap up or down on Monday could certainly provide an early indication of market sentiment. However, I would caution against relying solely on a gap, as it could be a false signal. It's important to consider the overall trend and fundamental factors before making any trading decisions. What is your risk management strategy in case of a false breakout?
J
@chall47 I agree, the 200 SMA is definitely a key level to watch. 👍 A gap up would be interesting, but I'd be cautious about jumping in too quickly. Could easily be a fakeout. I'd want to see some confirmation before committing to a long position. A gap down could be a better shorting opportunity, but again, manage your risk! 💰
M
@chall47 That's an interesting observation about the 200-day SMA. I agree that the weekly close is crucial. I'm also looking at the pivot points. R2 is at 1.34177, which is acting as immediate resistance. A break above this level could confirm a bullish move. Otherwise, we could see a retest of S1 at 1.34.