Daily Price Action
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GBPCAD Reaches 500-Pip Target; Where to Next Week?

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GBPCAD reached our 500 pip objective today at 1.6800.

I first wrote about this inverse head and shoulders pattern on September 9.

At the time, GBPCAD was trading just below the neckline at 1.6260.

I also made a video on October 2 explaining why I felt the GBPCAD was due for a move higher up to 1.6800 and perhaps even 1.6960.

For those who saw last Saturday’s forecast video, you know that there is also an ascending channel in play here.

Here’s the GBPCAD portion of Saturday’s video:

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Notice how GBPCAD tested this confluence of support at 1.6250 last week and again this week before catapulting higher.

Buyers kept prices above that 1.6250 area, so this bullish reversal pattern was always intact.

So now that the 500 pip target is behind us, where to next week?

As always, it’s going to come down to today’s close at 5 pm EST.

If GBPCAD can manage a close above 1.6600, I would expect buyers to defend the area as new support next week.

Notice how the pair stalled out at 1.6600 in the second half of September.

Therefore, a close above it today would likely keep the rally intact as we head into next week.

Alternatively, a daily (and weekly) close below 1.6600 would expose the next key support at 1.6440 for next week.

Based on how the price action looks with just one hour to go before the close, I would say GBPCAD buyers have more fuel in the tank.

And just like I’ve mentioned recently, if buyers can hold onto this short-term trend, we could see GBPCAD tag the 1.6960 region within the next few sessions.

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GBPCAD inverse head and shoulders on the daily time frame
GBPCAD inverse head & shoulders objective reached

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22 comments
Justin Bennett says

Subscribe to my YouTube channel today 👉 http://bit.ly/2lTRJCh and be the first to watch Saturday’s Forex forecast video, which will cover EURUSD, GBPUSD, USDJPY, and two other currency pairs.

Don’t forget to click the bell icon 🔔 after you subscribe. That way you get notified every time I post a new Forex video.

See you on YouTube!

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Segfault says

Very lucky coincidence with Boris Johnsson Brexit state, nothing to do.with this crapy “head and shoulders” pattern, sorry but your lines are just the matter of.luck, nothing more…

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    Justin Bennett says

    I think everyone needs to find a method that suits them. If fundamentals are your thing and work for you, then no need to change.

    Reply
      Chubby cheeks says

      I agree with you… one should stick to what they understand

      Reply
Emmanuel says

Justin you are the best.i have learnt a lot.i am the next best trader in the world because of you

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    Justin Bennett says

    Thanks, Emmanuel. That’s great to hear.

    Reply
Robert DeCuir says

My comment isn’t meant to be sarcastic or derogatory in any way: Once upon a time I got mixed up with a snake oil salesman named Ken Roberts whom felt he had enough followers to actually move markets in his wanted direction however…nothing moved under him in the same manner as I’ve noticed at times as it has after you have spoken about. My question is, Have you in all respect gained the following to possibly move markets?

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    Justin Bennett says

    No, the Forex market is a multi-trillion dollar a day market where retail traders like you and I account for roughly 6% of the volume.

    GBPCAD is just a case of a reversal pattern working out. It doesn’t always happen that way, though.

    Reply
William Beverly says

Justin, when I try to use a stop loss, I try to get as close to R=3 as possible. But 99 percent of the time, my stop loss gets hit. I think there are a lot of stop loss hunters in the market.

Currently, I do much better using back to back buy and sell stop trades without any stop loss. When the market triggers one of the stop trades, The other serves as somewhat of a stop loss,

William Beverly

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    Justin Bennett says

    Thanks for sharing, but it seems to me that if your stop gets hit 99% of the time, you’re doing something very wrong.

    Reply
sifiso says

Hi there! The market makers do hunt for stops William. In fact that’s how they ensure that most retail traders loose money. But that’s not the only reason you are loosing. You probably do not have a winning trading strategy, or you don’t have practical risk management rules in place or you just don’t trade in line with your personality.

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Yoas says

Hi Justin
Thank you for sharing your analysis.

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muzaffar ahmed says

you are doing very well job sir…God bless you..keep it up…

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Stephen Mkandawire says

Thanks very much sir, have started understanding something in forex trading now and will do more sir

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muhammad ashraf says

hi,great tips for me bro GOD bless you and your sweet family, bro i do not care won or lose but your secrets tip change my life, bro i am trying long time in trading but your last 3 videos is change my mind, here people talk i am losing so so but my mind is you pick the power full point for other, bro i am visit your site 2015 but do not understand your 3 power full tips pin bar, and 2 others

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Zeeshan Niazi says

I got positive results since i have read your articals on price action and strategies especially for daily and weekly time frame. Maybe am on mistake but I think price action is not just technical tool but the other name of fundamental analysis of market because we can see how smart money follows the multiple aspects of market structure. Nothing is guaranteed in forex. Your analysis are highly appreciated.

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Comfort Uche says

I love your analysis with respect to price action, l just wish l have money so l could register in DPA.

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Veronica Nduta says

Very good signals n are really n on time

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said says

we proud to have you master. keep going

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P says

This one played out perfectly. Thumbs up Mr Bennett.

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yahaya yusuf Lapai says

i love your forecast

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Graeme says

Hello Justin. I am getting a lot out of your commentaries and thank you very much. I was long on the GBPCAD bounce off the neck line but then stopped out on the second pull back to the neck line only to miss the big move up. Oh well. Better luck next time. Cheers Graeme

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