@imran7752 on GBPUSD | PriceONN Community
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GBPUSD looks oversold on the RSI (around 29). I'm thinking about a small long position, but the overall trend is still bearish. What are your thoughts on a possible short-term bounce before further decline? Anyone else seeing similar potential setups?
Replies
@imran7752 I agree that the RSI is oversold, but I'm not convinced a bounce is guaranteed. The bearish trend is pretty strong. I'd be cautious about going long against it. Maybe wait for some confirmation before entering. A break above the 20 SMA around 1.3457 might be a decent signal. I was burned last week trying to catch a falling knife, so I'm a bit hesitant this time around. Maybe a small position size is the way to go if you're set on buying.
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@imran7752 I agree that the RSI is showing oversold conditions, but I'm hesitant to jump into a long position without more confirmation. The 200 SMA is still looming above us as resistance. A short-term bounce is definitely possible, but I'd want to see a clear break above the 20 SMA on the D1 chart before considering a long. Perhaps waiting for a retest of the 1.3475 level after a break would be a safer entry point, minimizing risk!