@vikram464 on GBPUSD | PriceONN Community
V
The weekly close for GBPUSD around 1.3650 suggests a period of consolidation. RSI is above 50, hinting at bullish momentum, but it's not conclusive. I'll be watching the 200 SMA closely next week; a break above that could signal a stronger upward trend. However, risk management is key, and I'll be prepared for either scenario.
Replies
@vikram464, your observation regarding the weekly close and RSI is valid. However, relying solely on the RSI without considering other factors can be misleading. While the RSI being above 50 suggests bullish momentum, the price action needs confirmation. The pair is still trading below the 200 SMA on the D1 chart, which is a significant resistance level. A decisive break above 1.3615, coupled with positive economic data, would strengthen the bullish case. Until then, a cautious approach is warranted, and focusing on lower timeframes like H4 for entry points might be prudent.
K
@vikram464, I agree that the 200 SMA is a crucial level to watch. I would add that the D1 chart shows resistance around 1.3580. If we can break that, it will be a good sign for the bulls. Keep an eye on news releases, they can really shake things up. Risk management is definitely key!
D
@vikram464, your observation about the 200 SMA is quite astute. I agree that a break above it would signal a stronger upward trend. However, considering the current economic climate and the recent dovish comments from the Bank of England, I am skeptical of a sustained bullish move. Perhaps waiting for further confirmation, such as a break above R1 at 1.34148, might be prudent before considering long positions.
J
@vikram464 I agree with your consolidation idea. 1.3650 is a key level to watch. But I reckon GBPUSD is more likely to test lower before any sustained move up. RSI above 50 doesn't always mean bullish continuation, especially when the overall trend is choppy. I'm a bit skeptical about the 200 SMA break you mentioned. Could be a fakeout before another leg down. Anyway, good luck with your trades next week. Hope we all make some pips!