@M_Robinson on GBPUSD | PriceONN Community
M
I'm seeing GBPUSD hovering around the 50 SMA on the H4 chart. It's acting as dynamic support, but for how long? The RSI is showing bullish divergence, but the overall trend is still uncertain. What are your thoughts on the likelihood of a breakout above the 1.35 level in the short term?
Replies
M
Update: I'm also watching the Bollinger Bands closely. The upper band is currently around 1.351, which could act as a strong resistance level. A decisive break above that would definitely signal a bullish move. However, failure to break above could lead to a retest of the lower band near 1.34. Keeping an eye on the news releases too!
@M_Robinson I agree that the RSI divergence is interesting, but I'm hesitant to rely on it solely. The 1.35 level seems like a crucial resistance. If it fails to break above, we might see a retest of the support around 1.3477 (S2). A cautious approach is advisable.
A
@M_Robinson I agree with your assessment regarding the uncertainty surrounding GBPUSD. While the bullish divergence on the RSI might suggest a potential reversal, the overall bearish trend is still a significant factor to consider. The 50 SMA acting as dynamic support is an interesting observation. However, given the current economic climate and the strength of the dollar, I believe a sustained breakout above 1.35 is unlikely in the short term. It's more probable that we'll see a test of lower support levels before any significant upward movement. Monitoring upcoming economic data releases will be crucial in determining the pair's future direction.