Daily Price Action
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GBPAUD: Future Direction Hinges on 1.7570

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

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Over the weekend I mentioned an area on the GBPAUD that could trigger a reaction from sellers. The 1.7540/80 region is the intersection of former neckline support and an area that’s been a factor since the May 2017 high.

While I certainly wouldn’t call Tuesday’s candle a bearish pin bar, the long upper wick does suggest an influx of selling pressure in the region. And yesterday’s 1.7551 close puts the pound cross right between the 1.7540/80 area I wrote about on Sunday.

However, you will notice that the neckline here gets a little “messy”. Monday’s close appears to have almost broken above the level. But again, the long upper wick and final print on Tuesday keeps the bearish outlook alive, at least for now.

As long as the pair trades below 1.7570/80 on a daily closing basis (New York 5 pm EST), I will remain cautiously bearish. The next key support comes in near the June low at 1.7370/90. We could also see a few bids develop on a retest of last week’s low at 1.7282.

If sellers can keep this head and shoulders pattern together, the 1,250 pip objective comes in near the 1.6300 handle. Of course, several levels will become a factor in the interim including 1.7390, 1.7110 and 1.6700.

Alternatively, as mentioned previously, a daily close above that 1.7570/80 area would negate the idea altogether. With that in mind, the remaining 72 hours of trade this week promise to be pivotal for the GBPAUD.

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GBPAUD new resistance area on the daily chart

Leave a Comment:

17 comments
IDOGEI emmanuel says

Thank you Justin

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oludare says

yes Justin i am closely monitoring the pair in fact i have pending orders already but i am convinced the pair will play out what its counterpart GBPCAD did . Thank you very much for your insight.

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Nelson says

Always on time Mr Justin. Tuesday’s High took me out of trade. I had my S/L just above the Neckline. I was skeptical opening yet another position when i saw the longer upper pin bar. Would you advice for a S/L just above the Neckline?

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vangie says

Thank you very much sir for your daily trade analysis, hope to be a member of your community soon.

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Rod says

It look nice but it’s a lot of news coming out for both pairs this week. I would like to see how it plays out

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Pierre Mifsud says

AUD is still weak so it is a matter of time, no necessary this very week Justin. We first need to focus on the daily chart of AUDCAD where this pair is awaiting further weakness of 200 pips till the 0.9231 handle and only later we can start to see some selling pressure in the GBPAUD pair.

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    Pierre Mifsud says

    If AUD gets its full strength the objective for me is below 1.62 around 1.6150

    Reply
      Pierre Mifsud says

      This 1.6150 handle I am mentioning is the 25 th August low of 2017 which in my opinion my be retested in a few months time

      Reply
Mostafi says

Sir, Thank you for providing me valued analysis as I can become a profitable trader.

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Burton says

Thank you for sharing your analysis. It’s really helpful.

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Huzaifa Haji says

Good Analysis!!!

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TJ says

The pattern is still valid on the weekly. As you mentioned we’ll see at the end of the week. A close below the weekly neckline will empowered the bearishness. If it can be said like that:)

Thank you man

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nadhif says

thanks much for best analysis let me wait with my sell stop

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bolsisitico says

SL above right shoulder?

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gnic says

where is stop loss?

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Nuri sahin says

As for today (friday) I think the setup already break as the daily close for Thursday well above resistance 1.7580

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Fola says

Justin, this pair just completed a head & shoulders formation visible on the H1 chart after retesting the extended trendline. So we might be in on the 1,250 pip reversal. Your thoughts, please…?

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