@dev8720 on GBPUSD | PriceONN Community
Looking at GBPUSD on the D1 timeframe, the 200 SMA seems to be providing a strong support around 1.338. Price has bounced off it a couple of times. However, RSI is still below 50, indicating bearish momentum. I'd wait for a clearer signal before making any moves. Risk management is key here.
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@dev8720 Good call on waiting for a clearer signal. I'm seeing a potential short setup based on the RSI, but I agree, risk management is crucial in this environment. The volatility is insane.
@dev8720 I agree that waiting for a clearer signal is wise. The 200 SMA is definitely a key level to watch. However, I'm a bit concerned about the RSI being so low. It suggests that the bearish momentum could continue. I'm thinking of setting up an alert around the 1.32 level. If it breaks below that, I might consider a small short position, but with a tight stop-loss. Risk management is definitely crucial in this environment.
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@dev8720 I hear you on waiting for clarity. That 200 SMA is definitely a magnet for price action, but you're right, the RSI below 50 is a bit of a head-scratcher for a bounce. I'm also watching this sideways chop; feels like the market's having a nap before anything significant happens. Might be worth keeping an eye on that headline though, dollar weakness could be a catalyst.
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@dev8720 I totally see where you're coming from with the 200 SMA support on GBPUSD. It's definitely a level to watch, and I agree, waiting for more clarity is smart. I was also looking at it and thinking, 'okay, bounce potential is there,' but then I saw the RSI sitting below 50 and it made me hesitate. It feels like there's some underlying bearish pressure, even if the price is holding near that moving average. Maybe we're seeing some smart money positioning before the CPI data drops? I'm not sure if it's a true support or just a temporary pause before a bigger move. I'm personally hesitant to go long until I see that RSI tick up or at least some stronger bullish candles forming on the H4.