GBPAUD: All Eyes on Channel Support Next Week

by Justin Bennett  · 

March 8, 2019

by Justin Bennett  · 

March 8, 2019

by Justin Bennett  · 

March 8, 2019


GBPAUD tested a significant resistance area this past week.

On Monday I pointed out the 1,440 pip range here. Resistance is located at 1.8720 while support is near 1.7280.

When I wrote Monday’s post, GBPAUD was starting to come off resistance.

However, it took a second retest of the 1.8720 resistance area before sellers were ready to regain control.

If you missed out on today’s 200-pip drop, there’s no need to panic.

It’s only my opinion, but GBPAUD looks ready to test channel support near 1.8300 next week.

And that might be the beginning of a much larger move south.

Go here to get instant access to the same Forex charts I use to trade price action.

I favor channels for a few reasons. One of those reasons is that they are an excellent barometer of trend strength.

Let’s use the GBPAUD ascending channel below as an example.

Notice how the pair has tested both support and resistance on multiple occasions.

In late January, buyers carved a higher high and also managed to tag channel resistance at 1.8520.

That was a sign of strength.

Fast forward to this latest higher high in late February and March.

So far, buyers have not managed another retest of channel resistance. That’s partly because of the range ceiling at 1.8720 I mentioned earlier.

But it could also be an indication of weakness.

The key will be to watch how GBPAUD reacts at channel support next week and whether or not buyers can muster another leg higher.

If the pair challenges support next week before reaching back to the 1.8720 area, I would argue that a breakdown is imminent.

And if GBPAUD closes the day below channel support, it would expose the next key area at 1.7740 and perhaps even the range floor at 1.7280.

Alternatively, a daily close above 1.8720 would expose ascending channel resistance.

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GBPAUD ascending channel on the daily time frame


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28  Comments

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  1. Thanks Justin for the follow up. In early US session yesterday, GBPAUD has broken a inner trend line and 1.8520 level as well in H4. I’m expecting a retest of the both levels as resistance on Monday. A low risk entry at these levels can fetch almost 250 pips up to the daily channel support. Thanks.

  2. Thank you Justin For the confirmation i thought i didn’t draw my trendline correctly but now i see that i was right, yes it didn’t retest before so i was a little bit scared when i short the pair yesterday but i made profits, YOU ARE THE BEST MENTOR.

  3. Justin I am telling you that there is a strong bearish divergence on my AMPLIFIED RSI between the 24 th Jan and 28 Feb.2019 ……so it should roll down

      1. What I really always admired of you Justin is your fairness and modesty…That makes you indeed a very special person….Take care!

  4. Am seen myself as a better trader now because of your prompt analysis… I will become member very soon… Thank u

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