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GBPUSD continues to hold below the trend line from the year-to-date low.
This level had been keeping the 2019 rally alive. However, sellers cleared trend line support on March 28th.
Since that time, we’ve seen it attract sellers.
Although Wednesday’s session spiked above former trend line support (new resistance) on an intraday basis, the pair failed to close the day above it.
This is why I’m always on about the importance of New York close charts.
Notice how yesterday’s 5 pm EST close was just below the trend line near 1.3160.
Today’s session also spiked above the level, but GBPUSD is currently well off session highs.
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In fact, the pair has already taken out Thursday’s low.
But the real test for sellers still stands in the 1.3010 region. The area has supported GBPUSD since February 22nd.
It’s likely going to take a daily close below it to open up downside targets including 1.2920 and 1.2800.
My guess is we will continue to see the choppy and indecisive price action continue for some time.
After all, it’s what the GBPUSD has done for nearly a year now.
That said, I remain bearish here as long as the pair is below this trend line that extends from the year-to-date low.
In my experience, any trend line that commences with a year-to-date low or high is significant, and I have no reason to believe this situation is any different.
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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