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GBPAUD Shorts Still Favored Below 1.8500

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Recently I’ve been discussing an ascending channel on GBPAUD.

Since late last year, the pound cross has been trading in a 1,440 pip range. I pointed this out a month ago on March 4th.

But since the December 2018 low, GBPAUD has carved an ascending channel.

The idea was (and still is) to use this channel to identify a break that would expose downside targets.

Last Friday, sellers made their move closing GBPAUD well below support.

However, this past Tuesday’s session closed back above the channel bottom which seemed to have negated the idea.

So GBPAUD shorts are off the table, right?

Not quite. One thing to keep in mind is that the pair broke channel support last Friday.

That means GBPAUD cleared this channel on a weekly closing basis.

And if we take a look at the weekly time frame below, you can see where this week’s candle has formed a long upper wick.

That wick illustrates the rejection from former channel support which is now serving as new resistance.

I mentioned the idea that GBPAUD is respecting this level on the weekly time frame to Daily Price Action members just the other day.

And so far, so good.

For those who aren’t short here, keep in mind that GBPAUD may want to retest the 1.8500 area next week before moving lower.

You probably also don’t want to enter short here on a Friday in case we get a surprise gap on Monday.

All in all, though, I still think GBPAUD is a sell at least to the 1.7930 area.

And if 1.7930 support gives out, we could see GBPAUD return to the multi-month range floor at 1.7280.

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 break

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13 comments
Justin Bennett says

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    Elvis Igben says

    Justin the Great Fx Analyst, making trading interesting and profitable to pros and novice traders.

    Reply
      Justin Bennett says

      Cheers, Elvis. 🙂

      Reply
Adebayo saheed says

All eyes on the pair…thanks

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    Justin Bennett says

    You’re welcome.

    Reply
Howard Hill says

thanks Justin

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    Justin Bennett says

    You’re welcome.

    Reply
.Muhammad Iqbal says

Your ideas changed my life and I thank you very much

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    Justin Bennett says

    Glad to hear it!

    Reply
Kesh says

Trade have never been so simple. It made trading so easy. Thank you Sir

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    Justin Bennett says

    You’re welcome.

    Reply
Bonnie says

Hae, why don’t do you put a pdf link of the analysis so that anyone can download it. Thank you.

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    Justin Bennett says

    I guess I don’t see the purpose that would serve.

    Reply
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