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GBPUSD on Its Way to 1.2770?

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The GBPUSD is holding below the resistance level I mentioned last week.

The 1.3050/70 area is the intersection of the 2019 ascending channel as well as the trend line that extends from the November 2019 low.

I wrote about this area on Friday and again on Sunday.

The challenge for GBPUSD sellers this week has been that 1.2980 area, which has served as support so far this week.

At least that was the case through Tuesday’s session.

You can see how 1.2980 has been a factor since last October.

However, notice how GBPUSD is now trading below 1.2980 intraday.

The pair continues to come off that 1.3050/70 resistance area, which means my bearish bias is still intact.

I’ve favored shorts below the 1.3050/70 area the entire time.

If today’s session closes the day below 1.2980, we could finally see the GBPUSD trend lower toward that 1.2770 support level.

I use New York close charts, so the “daily close” refers to 5 pm EST. These charts are essential for trading price action.

Go here to get access to the Forex charts I use.

Notice how 1.2770 supported the pair in October and November of last year.

But 1.2770 may only provide temporary relief.

In my opinion, the 1.2570 area is a more sensible short to intermediate target for the pound.

Keep in mind too that 1.2570 and 1.2770 are very near the 61.8% and 50% retracement levels of the 2019 range.

As for today, though, it’s going to come down to where GBPUSD closes in relation to that 1.2980 area.

A daily close below it would open the door to 1.2770.

On the flip side, a daily close back above 1.2980 would keep the area intact as support a while longer.

Don’t forget that pound weakness compliments the GBPCAD idea I first discussed on February 7th. I also wrote about it yesterday.

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GBPUSD confluence of resistance

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15 comments
Justin Bennett says

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Henryk says

Super Justin,GBPUSD sell to 1.2770 ok.

Reply
    Justin Bennett says

    Are you asking me? If so, that’s your decision.

    Reply
Samuel says

Thanks for the posting please

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Praise says

Thanks Mentor. I think a daily close below that 1.2980 will do well for me. I really appreciate the analysis.

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franklin says

All these regular updates are too much to be free on telegram. Am not trying to be a Snitch guys, but Justin is an amazing guy.

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    Justin Bennett says

    Cheers, Franklin, Thanks for that.

    Reply
Elvis Igben says

Sir,
Could it be that a SHS pattern is forming on GBPUSD..

Reply
    Justin Bennett says

    It doesn’t qualify as one according to my rules.

    Reply
faisal says

thanks justin

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Nihat says

Hi Justin Bennett!

Which is the trend line or support and resistance is most reliable to follow the trend just like GBPUSD in the picture?

Sinclere.

Reply
    Justin Bennett says

    Sorry, I don’t understand the question.

    Reply
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