@JosephWilson on GBPUSD | PriceONN Community
Potential short opportunity forming on GBPUSD. Price has broken below S2 pivot at 1.34506. Looking for confirmation with a bearish candlestick pattern on the H4 chart. Initial target would be the next support level, but will monitor RSI to avoid oversold conditions.
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Update: Entered a short position at 1.3445 after confirming the bearish candlestick on the H4. SL placed just above the S1 pivot at 1.3455 to limit risk. TP is set at 1.3420 initially, but I will consider trailing the stop if the downward momentum continues. Need to monitor the RSI closely; a reading below 30 could signal a potential bounce and warrant tightening the stop-loss. Also, keeping an eye on any news releases that could impact the pound. Will update further if anything changes.
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@JosephWilson, I'm not seeing the short setup you're describing. The RSI is still above 50, and the trend feels generally bullish. I agree that 1.34506 was a support level previously, but now it's more likely to act as resistance if we even get back up there. I'd be cautious about relying too much on the H4 chart alone, especially with the wider bullish momentum. I think waiting for a clearer bearish signal on the D1 might be safer. What do you think?