@ZainabM78 on GBPUSD | PriceONN Community
Z
I swear, I have this bad habit of buying tops and selling bottoms, especially when I'm watching the news. 🤦♀️ Like that German inflation spike – I saw it and immediately thought, 'oh, ECB will hike more, EUR will be strong!' but then I saw the EUR/USD chart and it just tanked. So I thought, okay, maybe GBPUSD will follow the dollar strength and I should short it? But then I see it's oversold on the RSI and I get confused and hesitate. Ended up taking a small loss on a premature short. Need to stop letting headlines dictate my entry without confirming with the chart action first. It's a constant battle against my own impulsiveness!
Replies
J
@ZainabM78 lol I feel you! It's so easy to get caught up in the news and make emotional trades. That EUR/USD move was brutal, caught so many people off guard. Definitely easier said than done to just stick to the plan.
@ZainabM78 I totally get what you mean about the news. It's like you see a headline about US inflation ticking up and think the dollar will strengthen, which it did, but then the market just does its own thing. It's hard to trade based on news when the price action doesn't always line up immediately. Especially with something like oil prices jumping again, it's hard to know if that's a bullish signal for USD or just another short-term thing that will get ignored.
Z
@ZainabM78 Ah, the classic news trap. It's so easy to fall into that, especially when you're trying to make sense of those big inflation numbers. You see a headline about rising oil prices and think dollar strength is guaranteed, but then the cross-currency pairs can have their own agenda. I've seen plenty of trades blown by focusing too much on macro headlines without confirming with price action. Like here, with GBPUSD, the RSI is pretty oversold on the H1, but the price is just grinding lower. I'm looking for some sort of fair value gap to fill above, maybe around 1.3220, but honestly, with this liquidity, it could do anything. Stick to your charts first, news second, is the mantra I try to live by.