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GBPAUD Rally Stalls at Confluence of Resistance

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

Back on April 5th, I wrote that I favored GBPAUD shorts below 1.8500.

We had been watching this ascending channel for several weeks before the break on March 29th.

However, buyers closed the pair back inside the channel on a daily closing basis on April 2nd.

At the time, it looked like a false break.

But as convincing as the daily close can be, it isn’t the only closing price that matters.

The weekly close, for example, trumps the daily.

It’s a matter of volume traded. Just as there is more volume in a 24-hour session than a 4-hour one, there is more volume in a week than in a day.

In the case of GBPAUD, the pair closed the week of April 1st back below channel support.

That meant the area was serving as resistance on a weekly closing basis.

Last week’s relief rally brought the pair back to a confluence of resistance at 1.8430.

It’s the intersection of a horizontal level and a short-term trend line that extends from the year-to-date high.

As long as this region is intact on a daily closing basis, I favor selling GBPAUD.

If sellers can get past the recent low at 1.8095, there isn’t much stopping them from reaching the 1.7930 area.

Now, 1.7930 may look a bit “messy” on the daily time frame, at least since last October.

But if you view this area on the weekly time frame, it’s significance becomes clear.

Even though I’m still relatively bearish GBPAUD, you don’t want to chase.

It’s essential to devise a plan for selling the pair that’s in line with your criteria.

Otherwise, you’re just hoping for a favorable outcome which gives you no trading edge whatsoever.

For now, though, GBPAUD is vulnerable while below 1.8430 with key support coming in at 1.7930 followed by 1.7740.

Want to see how we’re trading GBPAUD? 

Click Here to join us and save 40% – Ends April 30th!

GBPAUD confluence of resistance

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15 comments
Justin Bennett says

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Matt says

Thank you once again for sharing you analysis, i am learning a lot. Stay Blessed

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    Cornel says

    You mention 1.8095 as last week’s low that sellers need to pass. Is this number a mistake?

    Reply
      Justin Bennett says

      The “last week” part, yes. The price, no.

      Reply
    Justin Bennett says

    You’re welcome, Matt.

    Reply
Lawal says

Is it only members that have access to the NY chart what of non member

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Bornface says

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    Justin Bennett says

    I don’t provide signals. Here’s why:

    https://dailypriceaction.com/friday-qna/daily-price-action-trade-signals/

    If you want my advice, stop looking for signal services and learn how to trade instead. If you aren’t interested in learning how to trade, you’re probably better off putting your money in a few low-cost index funds. That’s my two cents.

    Reply
POLA P says

thanks

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sanjay.sagevadiya@gmail.com says

justin hi how are you ,you are great help us

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    sanjay.sagevadiya@gmail.com says

    hi big brother

    Reply
gabriel says

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Piet says

Hoi Justin –
totally agree – nice opportunity to participate

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Vytas Ginas says

Hi Justin, do you still keep GBPAUD short?

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