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GBPAUD: All Eyes on Channel Support Next Week

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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

Leave a Comment:

28 comments
Nasir says

You are simply the best. Looking forward to join ur live membership program

Reply
    Justin Bennett says

    Thanks, Nasir. We look forward to you joining us. Enjoy your weekend.

    Reply
chido says

hello
i tried reaching you on telegram could not because of the limitation you place ..

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Ezeadim says

Hello Justin thank you so much. I made some pips using your analysis.

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    Justin Bennett says

    You’re welcome. Well done.

    Reply
Abul Hasanath says

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.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
LINDIWE says

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.

Reply
    Justin Bennett says

    You’re welcome. Thanks for the kind words. Glad you’re enjoying the site.

    Reply
LINDIWE says

I t didn’t retest the resistance area before dropping

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    Justin Bennett says

    Right, that’s what I mentioned above.

    Reply
Chris says

Looks like it might drop further next week. Thanks mate!

Reply
    Justin Bennett says

    My pleasure, Chris. Enjoy your weekend.

    Reply
billy says

Justin your analysis is so super I wish I joined your lessons but in future I will. Thanks for everything.

Reply
    Justin Bennett says

    Thanks, Billy. We look forward to having you in the member’s area.

    Reply
Zweli says

always on point.Justin you groomed me and now I can see my improvement. Thanks bro keep up the good job

Reply
    Justin Bennett says

    That’s great to hear. 🙂 Will do.

    Reply
Pierre Mifsud says

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

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    Justin Bennett says

    I believe you. But the price action as I explained it above tells the story well enough for me.

    Reply
      Pierre Mifsud says

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

      Reply
        Justin Bennett says

        Cheers, Pierre. I appreciate the support.

        Have a great weekend.

        Reply
Adebayo saheed says

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

Reply
    Justin Bennett says

    Nice to hear. You’re welcome.

    Reply
Henryk says

Witam Justin,kiedy przyłączyć się do handlu?.

Reply
    Justin Bennett says

    English, please.

    Reply
Samuel says

Thanks a lot Sir

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Godfrey Dotile says

Thanks for the analysis, I have been watching this pair.

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