@mia1839 on GBPUSD | PriceONN Community
M
Reviewing the weekly chart for GBPUSD, it appears we're seeing some consolidation around the 1.3650 level. The RSI is showing bullish momentum, but we need to see a sustained break above the 1.3660 resistance to confirm a stronger upward trend. I'll be watching closely for a potential gap opening on Monday and how it interacts with the 200 SMA.
Replies
@mia1839, I agree with your observation regarding the consolidation around 1.3650. The RSI does hint at bullish potential, but a confirmed breakout above 1.3660 is indeed necessary. I'm also looking at the Bollinger Bands, which show price near the upper band, suggesting possible overbought conditions in the short term. A pullback to the 20-day SMA (around 1.3622) could be a buying opportunity if it holds as support. I'll be setting alerts around both the 1.3660 resistance and the 1.3622 support to prepare for either scenario next week.
O
@mia1839 I agree with your assessment regarding the consolidation around 1.3650. The weekly RSI does suggest bullish potential, but I'm also cautious about the proximity to the 200-day SMA at 1.36363, which could act as dynamic support. A sustained break above 1.3660 is indeed crucial, but I'd also like to see confirmation from the MACD on the H4 chart before committing to a long position. Perhaps waiting for a clear breakout above the Bollinger Band upper limit at 1.37 might be a safer approach. What are your thoughts on the potential impact of upcoming Brexit negotiations?
S
@mia1839 Good points! I agree that 1.3660 is a key level to watch. If it breaks, we might see a quick run-up to 1.37. I'm also a bit worried about a potential gap opening on Monday. With the RSI showing bullish divergence, it's a bit of a toss-up, isn't it?
R
That's interesting about the consolidation @mia1839. So, if it *doesn't* break above 1.3660, does that mean it's likely to go down further? I'm still trying to figure out how to read these patterns. Also, what time frame are you looking at when you say 'weekly chart'? I've been mostly looking at H4 charts tbh.
C
@mia1839 I agree, that 1.3660 level seems crucial. Are you factoring in any economic news releases for next week that could impact the GBP?