@eokoro40 on GBPUSD | PriceONN Community
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Seeing a potential ascending triangle forming on the H4 chart for GBPUSD. Upper trendline around 1.3460 acting as resistance. If it breaks, we could see a nice move up. RSI is also trending up, so momentum is there. Keeping an eye on it tonight before bed.
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And if it doesn't break... that 1.3460 level could be a good shorting opportunity too. A fake breakout and then a drop would be a classic liquidity grab, right? Need to watch the volume closely if it approaches that level. High volume break = long, low volume rejection = short. Also, with the oil news still floating around, risk sentiment could shift quickly. Might put in a tight stop just in case. Going to bed now, hopefully I don't wake up to a crazy gap.
@eokoro40, I agree that 1.3460 is a key level to watch. The ascending triangle is definitely a valid pattern. I'd be a little cautious about shorting it immediately if it fails to break though. Given the overall bullish trend and the RSI above 50, a false breakout could easily turn into a bull trap. I'd want to see strong bearish confirmation before entering short, maybe a bearish engulfing candle on the H1 or even a break below the 20 SMA on the H1 chart. about the dollar strength might give it a push down too, but wait for confirmation.
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@eokoro40 That's a good observation about the ascending triangle on GBPUSD. I'm also seeing it on the H4. If it breaks above 1.3460, I'll be looking for confirmation with increased volume and RSI above 70 before entering a long position. Otherwise, I agree that a short could be a good play, but I'd wait for a clear rejection and bearish candle formation.