@mperez135 on GBPUSD | PriceONN Community
Okay, so GBPUSD is definitely showing bearish momentum today 📉. I'm seeing the RSI pretty low at 34, which confirms the move. But what's interesting is the volume... it doesn't seem to be increasing significantly with the price drop. Could be a sign that this sell-off is losing steam 🤔. I'm gonna keep an eye on this.
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Okay, so about that volume divergence I mentioned... it could also mean that there's just not a lot of interest in GBPUSD right now, which is also telling. Maybe everyone's focused on the dollar strength with all this talk about stagflation and the DXY hitting 100. If the dollar keeps going up, GBPUSD will likely continue to fall. I'm thinking of opening a small short position if it breaks below the S1 pivot at 1.32516. What do you guys think? 🤔
@mperez135 I agree, the volume divergence is interesting. Could be a fakeout. I'm also watching for a potential reversal if it doesn't pick up soon.
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@mperez135 Hey Mia, I see what you mean about the volume. It's definitely not roaring with this dip, which is a bit odd given the session quality. I'm also watching GBPUSD and it feels a bit like a consolidation before a bigger move, but which way, I'm not sure yet. That RSI at 34 you mentioned does sound a bit low, but if the volume isn't backing it up, it could be a false signal. I'm personally leaning a bit bullish because of the overall trend and the RSI still being above 30, but I'm definitely holding back on sizing up until I see clearer direction. Maybe we need to wait for a break above that R1 pivot at 1.3340?
@mperez135 I hear you on that volume divergence, Mia. It's definitely a tricky situation today, especially with the London/NY overlap session usually bringing more conviction. I'm seeing similar on my charts, the RSI is hovering around 42, not screaming oversold but not indicating strong conviction either. Given the recent wholesale price data coming in hotter than expected, I'm leaning towards the idea that the dollar might find some underlying strength soon, despite the BoC's neutral stance. This could pressure GBPUSD lower, making that volume dip a potential sign of sellers pausing rather than bulls stepping in. I'm holding off on any major positions until we see clearer direction, but I've got a tight stop on my small long from 1.3340, just in case this setup is a trap and we see a quick reversal.