Daily Price Action
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GBPAUD: Keep This 1,440 Pip Range on Your Radar

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For the past year, GBPAUD has been caught in a 1,440 pip range.

The 1.7280 area has served as support since August of last year while the 1.8720 region has attracted sellers beginning with the October 2018 selloff.

GBPAUD range on the daily time frame

Last week tested the 1.8720 area. And so far, sellers are doing their part.

However, there hasn’t been much in the way of bearish price action, at least not yet.

GBPAUD can also be a problematic pair to trade.

There’s no other way to say it. Its behavior is similar to that of EURAUD and even EURNZD and GBPNZD.

I usually group those four together when describing their behavior.

Even if GBPAUD were to carve a bearish pin bar or engulfing pattern up here, shorting the pound cross near multi-year highs is risky.

A view of the price action since the 2016 low depicts an uptrend that is currently up more than 3,000 pips.

That means this 1,440 pip range may be a temporary pause.

If it is, we could see the GBPAUD trend higher following this period of consolidation.

On the flip side, if GBPAUD is intent on testing the range floor at 1.7280 once more, shorts could turn out to be incredibly profitable.

One way to capitalize on potential weakness without getting burned at extreme highs like this is to identify a secondary pattern.

Channels are my go-to formation for that.

They occur more often than most realize and can be incredibly profitable if traded correctly.

It just so happens we have an ascending channel within the current range.

It’s going to take a close below channel support to confirm the breakdown and expose the 1.7740 support area.

Go here to get access to the same “New York close” Forex charts I use.

I’m sure some will ask: why not just sell now?

You could, but again, GBPAUD has been trending higher since 2016.

So without some form of bearish price action up here, you risk getting caught on the wrong side of a trending market.

If you do sell at current levels, it may not be a bad idea to lower your position size. You can always add to the position later should GBPAUD sellers follow through.

In summary, a close below channel support would expose 1.7740 followed by 1.7280. Alternatively, a close above 1.8720 would target channel resistance.

I will be keeping a close eye on this one as the price action unfolds.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

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

GBPAUD ascending channel on daily time frame

Leave a Comment:

37 comments
westher says

me encantaria que bajara ya que soy nuevo en trading manual y cometi el error de coger ese par en sell en 1.8500 y me tiene un margen bastante grande…

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    Justin Bennett says

    Please use English. You can use Google translate. Thanks.

    Reply
Tlai says

Very good analysis thnx very.much

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    Justin Bennett says

    You’re welcome.

    Reply
Moses Desmond Darko says

My name is Moses Desmond Darko. I am a new trader. I am a Ghanaian, leaving in Ghana. I started reading your articles yesterday. They have been very insightful. Thank you. I look forward to reading more from you going forward, and hopefully derive great benefits from them.

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    Justin Bennett says

    Welcome to the site. Thanks for commenting.

    Reply
wesley welile Limekaya says

Thanks for the analysis

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    Justin Bennett says

    You’re welcome.

    Reply
Dharvin says

nice and clear.thanks

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Guy Langford says

I have already paid for and asked for access to this program and need the log in information, for some reason I cannot find out how to log in here properly and I can’t get an answer from the support team. Please respond to my request.

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    Justin Bennett says

    The email was sent to you last month. Please check your spam/junk folder. I will resend it now.

    Reply
PULE says

i concur with you more 100% on AUD pairs and if i may ask will the interest rates dropped it more?

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    Justin Bennett says

    I don’t pay attention to interest rates.

    Reply
Matt says

Thank you for the insightful analysis, Stay blessed

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    Justin Bennett says

    You’re welcome, Matt. Have a good week.

    Reply
nhlaks says

great inititive with the whatsapp setup by the way

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Jenerali says

i like the “waiting for channel break-out” part. Thanks Justin

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    Justin Bennett says

    You’re welcome, Jenerali.

    Reply
Adebayo saheed says

thank you justin….i can wait for your analysis to reach me through whatsapp

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    Justin Bennett says

    You’re welcome.

    Reply
Chris says

Nice analysis

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Pierre Mifsud says

Spot on Justin!!!!…..Seems like a perfect short to me. Double top, which is more clear on the weekly time-frame first topped on the 10 th Oct 2018 and now 4 th March 2019, now the rolling over
same for GBPCAD & GBPCHF…… Very strong Bearish OVER-BOUGHT divergence on regular and amplified RSI for GBPAUD. Support lies at 1.7285….had noticed this two weeks ago.

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    Pierre Mifsud says

    GBPCAD & GBPCHF better viewed on the 4 hour time frames..

    Reply
    Justin Bennett says

    It could be a double top, but without a close below range support, it’s just sideways movement.

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Polys says

Hi Justin, i’d like to thank you for your analysis very helpful. Much appreciated keep on good working. Thanks again

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    Justin Bennett says

    You’re most welcome.

    Reply
Agbomma says

I want to know how much it costs to be your member. What is exactly the advantage of being a paid member if this kind of insight is given here. Do your paid members follow all your trade setups? Do you teach them price action on regular basis? I wish I can have a glimpse of the inner structure of the programme

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Oluchukwu says

Very good read. Tells like a story.

Thanks for a great analysis as usual.

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    Justin Bennett says

    That’s the idea. 😉

    Reply
Chuks says

Very insightful

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    Justin Bennett says

    Glad to hear it.

    Reply
Rayees says

what do you think about Gbpaud, it looks that it will break resistance, and go up

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    Justin Bennett says

    I already shared my opinion in the post above.

    Reply
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