Daily Price Action
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EURGBP Breakout Could See 0.9090

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On October 4, I wrote about a potential breakout on EURGBP.

You can see how the pair recently broke above descending channel resistance that extends from the August high.

I discussed EURGBP again in Saturday’s forecast video, noting how a close above 0.8920 would expose the next key resistance at 0.9015.

That brings us to today’s price action.

The EURGBP is well on its way to retesting the 0.9015 resistance level.

You can see how 0.9015 served as support in late August before flipping to resistance in early September.

As for key support, the 0.8920 is now a must-hold level for EURGBP bulls.

This is the area the pair broke out from earlier this week, and also the one I mentioned in Saturday’s video.

If EURGBP can get through 0.9015 resistance, I would keep a very close eye on the next resistance area at 0.9090.

This is one I discussed at length when the pair topped out earlier this year.

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Take a look at the weekly time frame, especially the price action between August 2018 and January 2019 to see why 0.9090 is so important.

I think that the 0.9090 area will be the determining factor as to whether this latest selloff was a mere correction or is the start of an impulsive move lower.

In other words, if EURGBP can eventually manage a daily close above 0.9015 and 0.9090, I think there’s a good chance we’ll see another run at the year-to-date high.

However, if we see an aggressive selloff materialize from 0.9015 and especially 0.9090, we could see EURGBP retest year-to-date lows.

At least that’s how I’m approaching the pair for now.

But so far, buyers are in control while above 0.8920 with a focus on 0.9015 and perhaps 0.9090.

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EURGBP breakout from descending channel resistance

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19 comments
Justin Bennett says

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Tsholo says

Your videos are so helfpul😢😢

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Njabulo says

Hey Justin, i recently started trading and it had been challenging until i bumped into some of your videos on YouTube and started following your blog.

I just have one clarity seeking question. In your videos you emphasise the use of daily charts for beginners and i want to know why is that and if also the account balance plays a role on which time frame to use.

Thanks a lot
Njabulo from south africa

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    Justin Bennett says

    Welcome from YouTube! There’s more volume in a daily candle than a 15-minute or even 1-hour candle. That extra volume creates more reliable signals such as the pin bar or engulfing candle. That and you’re less likely to tinker with your trade when you adopt a big-picture mindset that only the daily time frame can offer.

    As for account size, it could play a role but not in the way you might think. You can still trade higher time frames with a small account, but the question is: will profits be meaningful enough to avoid overtrading and the like?

    This post might help: https://dailypriceaction.com/blog/can-you-start-trading-forex-with-just-100/

    Reply
John Iwokiri says

I’m so grateful to Justin for your timely for ex updates, I’ve really improved a lot reading your blog post. Thanks and more grace…John

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    Justin Bennett says

    That’s great to hear, John! Cheers.

    Reply
Andrea says

Hi Justin, I have followed your posts on eurgbp and waiting for a break of the 0.8920 level as you suggested, but after the breaout, there was no retest and I lost the entry. Sorry

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    oludare says

    once a level is broken on a daily time frame, wait till the daily candle is finally formed then you can switch to 4hr time frame to look for price action do it on EURGBP you will understand what i mean.

    Reply
    Justin Bennett says

    You can’t catch them all. That said, the price action before the break was hinting at a move higher. I mentioned that in the forums within the membership site.

    I also wrote about how EURGBP was respecting the channel on the 4-hour time frame in my Oct. 1 video here: http://bit.ly/2AU9Lsy That means you could have played this on the intraday charts.

    Reply
Nicolas Nani says

You seem as an expect in grading. How is the gold and NAS100 are performing according to your analysis. I would to receive signals from you what should I have to do?

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    Justin Bennett says

    I don’t give signals.

    Reply
Ronnie Fisher says

Thanks for your 7 secrets to consistent profits in forex webinar.I spotted the potential breakout with EUR/GBP after placing the channel lines I learnt from the above webinar.

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    Justin Bennett says

    You’re welcome, Ronnie. That’s awesome to hear. Glad you’re finding the videos helpful.

    Reply
Marty says

Hi Justin. I was also monitoring this EURGBP trade so this is a great confirmation! I just saw also that the EURCHF is giving of a daily bullish engulfing signal on yesterdays daily close but when I read your blog about engulfing candles, you said they should always appear on a swing high/low. Do you think this EURCHF set up constitutes a swing low? For me, the recent high makes me think that the bullish engulfing candle is a valid signal which showing strength, with price looking likely to push up to the recent highs. But I wanted to ask you whether this would be a trade-able bullish engulfing candle according to your bullish engulfing strategy? Many thanks for all that you offer us 🙂

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Stanley Gatia says

Hi Justine,

Heard from other educators not to trade on Mondays and Fridays for reasons that market just opened, market closing respectively. Even heard to make your entries on Weds only as this is the best day to enter trades. What’s your take/experience on this?

Thanks.

Stan

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muhammad ashraf says

great bro, i am 4 years ego visit this site

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RandallRan Smith says

I’d like to point out how good profits can be made from watching your weekly YouTube videos. You’ve talked a lot lately about considering a bullish position in the EUR/GBP once the pair closes above .8920 for a U.S. session. On Monday it finally did that and then took off. Recalling what you had said in your weekend outlook, I took a binary options trade for the price to finish above .8925 for Friday’s 3 pm close. I got in at .8929 and, after several rejections around .9000, decided to close my position early for some very nice profit. Although the price has tanked since then and will finish below. 8920 for the week, your analysis was “right on” and proved to be a very nice daytrade setup. Thanks Justin!

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Randall Smith says

I’d like to point out how good profits can be made from watching your weekly YouTube videos. You’ve talked a lot lately about considering a bullish position in the EUR/GBP once the pair closes above .8920 for a U.S. session. On Monday it finally did that and then took off. Recalling what you had said in your weekend outlook, I took a binary options trade for the price to finish above .8925 for Friday’s 3 pm close. I got in at .8929 and, after several rejections around .9000, decided to close my position early for some very nice profit. Although the price has tanked since then and will finish below. 8920 for the week, your analysis was “right on” and proved to be a very nice daytrade setup. Thanks Justin!

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