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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.
A few days ago I wrote about the GBPUSD.
The pair was challenging the 1.2100 (new) resistance area after falling below it on August 9th.
I also wrote about descending channel support at 1.2000 in Sunday’s post.
The pound has caught a bid nicely from this area so far this week.
However, buyers still have work to do.
Although the pair is trading above that 1.2100 resistance area as I type this, it’s going to take a daily close above it to expose higher levels.
Remember that I use New York close charts so that each 24-hour session opens and closes at 5 pm EST.
A daily close above 1.2100 would likely attract buyers on a retest of the area as new support.
It would also expose channel resistance near 1.2300.
Keep in mind, however, that the GBPUSD has been trending lower since March.
In fact, the pair has failed to reverse the downtrend that began in April of last year.
So although a close above 1.2100 could attract buyers and push GBPUSD higher, it may not amount to much in the long run.
Also, if you aren’t comfortable bucking the trend, there’s nothing wrong with waiting for a sell signal at higher prices.
Justin Bennett is an internationally recognized Forex trader with 10+ years of experience. He's been interviewed by Stocks & Commodities Magazine as a featured trader for the month and is mentioned weekly by Forex Factory next to publications from CNN and Bloomberg. Justin created Daily Price Action in 2014 and has since grown the monthly readership to over 100,000 Forex traders and has personally mentored more than 3,000 students.Read more...
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