@AdemolaAdeyemi on GBPUSD | PriceONN Community
Good day everyone. Analysing GBPUSD charts over the weekend, the price action seems to be consolidating around the 1.3650 level. The RSI suggests a bullish bias, but the neutral trend indicates caution. I'll be watching for a clear breakout above R1 or a drop below S1 to confirm my trading direction next week.
Replies
Ademola, I'm not seeing any bullish signals on GBPUSD tbh. RSI may be oversold, but the overall trend is still down. Consolidation around 1.3650? Price is closer to 1.344 now. A break below S1 at 1.3437 seems more likely than a breakout above R1 at 1.34449. I'd be looking for shorting opportunities if it breaks that support level. The 200 SMA is way up at 1.359, so any rallies will probably be short-lived. Overall, I think the path of least resistance is down.
S
@AdemolaAdeyemi, thanks for your analysis! I'm trying to understand how you're using the RSI in conjunction with the trend. You mentioned a bullish bias from the RSI but a neutral trend overall. Does that mean you're waiting for more confirmation before making a move? I'm also seeing the consolidation around 1.3488, and I'm not really sure which way it's going to break. Any advice on how to better read these signals as a beginner would be fantastic. I appreciate your insights!
T
@AdemolaAdeyemi I'm seeing that consolidation too. I'm a little more bearish tbh. That fakeout above R1 last week felt like a classic bull trap to me, especially with the Iran news spooking the markets. Might be worth considering a short position if we break below that S1 level you mentioned. Just my two pence.