Daily Price Action
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GBPAUD Breaks Range Support, Targets 1.7500

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use.

There’s no shortage of pending reversal patterns at the moment. We discussed the potential head and shoulders on the GBPCAD less than 24 hours ago, and that pair tested neckline support earlier in today’s session.

We also have the EURAUD that could be forming a 1,000 pattern of its own.

Another currency cross in the same boat is the GBPAUD. There’s a head and shoulders pattern forming that if confirmed could result in a 1,200 pip decline. I first pointed this out back on June 26th.

In fact, the 1.7940 handle I mentioned in that post has stood as resistance since the June 19th session.

Here’s a view of the last twelve months:

GBPAUD head and shoulders pattern

The left shoulder peaked in December of last year, the head was carved between March and April of this year, and the right shoulder is in process.

Despite today’s bounce, the GBPAUD closed below a key level yesterday. The 1.7740 area has served as a pivot since the pair closed below it on May 21st.

With yesterday’s sub 1.7740 close, any retest of the area as new resistance should attract sellers. To the downside, we have neckline support in the 1.7500 region. The level extends from the swing low of the left shoulder that developed on January 11th.

In summary, this pending head and shoulders won’t be confirmed until sellers manage a daily close (New York 5 pm EST) below the 1.7500 area. However, 1.7740 should serve as resistance in the meantime.

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GBPAUD key levels on the daily time frame

Leave a Comment:

13 comments
Peter says

Thanks boss. Are we still schedule for the GBPUSD long?

Reply
    Justin Bennett says

    You’re welcome.

    I’m not sure what you’re referring to with regard to the GBPUSD.

    Reply
      Andrew says

      I had the same thought. With GCAD and GA going down big time, won’t GU be most likely to follow, rather than begin its long climb back up? Unless the USD really tanks.

      Reply
        Justin Bennett says

        Just focus on the chart in front of you. No need to overcomplicate things.

        Reply
Alex Hitchens says

Justin big fan of your work. May I ask, inside your member’s area do you have more of these trade idea’s with analysis?

Reply
    Justin Bennett says

    Well, since we trade the higher time frames, I don’t post more than one to two ideas each day. That’s more than enough anyway.

    However, there are forums in the member’s area where we discuss other ideas outside of those found here. I’m also involved in those discussions.

    You can see a short video of the member’s area at the link below.

    https://swingtrading.dailypriceaction.com/lifetime-membership

    Reply
Roy says

Spoilt for choice. Thanks coach. Loads of set ups going on so far.

Reply
    Justin Bennett says

    Anytime, Roy.

    Reply
Andre Dix says

Thank you Justin for your analysis. Oh and thank you for your Fri Q&A article. Why Do Most Forex Traders Fail? Looking for the magic indicator and no patience have always been my biggest problems in the past until I started to pay real attention to your articles.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Samuel says

Thanks for this Analysis.

Reply
    Justin Bennett says

    My pleasure.

    Reply
John Chege says

Thank you very much. You are one of the best mentor to many. Your analysis is always on top

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