Daily Price Action
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GBPUSD 560-Pip Range Offers Us a Clue

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I’ve commented on the 560-pip range on GBPUSD a few times in recent weeks.

The latest came in Sunday’s forecast. I pointed out that, although range support at 1.2700 is intact, the lower highs of late could spell trouble for buyers.

Notice how GBPUSD bulls failed to retest the range ceiling in early November. Even the mid-October retest of 1.3260 was lower than the September high.

These could be signs that 1.2700 support is about to break.

At the same time, as long as the level holds on a daily closing basis, the GBPUSD range is intact.

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In other words, there is no short opportunity while the daily chart is above 1.2700.

But I do want to point out the potential of a breakdown nonetheless. That way we’ll be prepared in the event sellers get the job done over the coming sessions.

When dealing with a range such as this, the final target of the breakout is often equal distance to the range itself.

In the case of GBPUSD, the range has a height of 560 pips. If we then measure 560 pips below 1.2700 support, we come up with a target of 1.2140.

What’s the significance of 1.2140?

A glance at the weekly chart quickly shows how the area attracted bids in late 2016 and early 2017.

GBPUSD possible target on weekly chart

That could be a clue or a mere coincidence.

In my experience, a confluence like the one above can serve as a clue about a market’s likely future direction.

Even if it is coincidental, I don’t think anyone can dispute that a close below 1.2700 would be a significant development for bears.

So, while the final resting place is questionable, we do know that 1.2700 is a must-hold level for buyers.

If they fail to hang on this time around, GBPUSD will likely continue to slide lower.

There are three support levels I’d keep an eye on below 1.2700.

Those include 1.2570, 1.2410 and 1.2300. Each of these could attract buyers if tested over the coming weeks.

Of course, the alternative would be a bounce from range support at 1.2700.

A bullish pin bar from this area would indicate that buyers aren’t ready to fold just yet. It would also expose 1.2880 resistance and perhaps 1.3070.

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GBPUSD range support and resistance

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41 comments
Anesu says

Thanks Justin

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    Justin Bennett says

    You’re welcome.

    Reply
      Muhlisin says

      Can l have email justin

      Reply
        Justin Bennett says

        Use the contact form.

        Reply
Surfer says

You’re just great Justin… Thank You 🙏

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    Justin Bennett says

    You’re very welcome.

    Reply
frank says

Thanx Justin you analysis helps me very much and plse continue to give some of us more updates because they help to analyse the trade opportunuties

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    Justin Bennett says

    My pleasure. Will do. 🙂

    Reply
Eric says

I appreciate

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    Justin Bennett says

    Cheers, Eric.

    Reply
Rabani says

Thanks Sir for best analyse

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    Justin Bennett says

    You’re welcome.

    Reply
Richard says

I started trading forex two months ago, I have made money and also lost money, I need a mentor. I need help. Would be Forever thankful if you can tutor me. Thanks a lot

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Vuyo says

Is this not similar to the NZDJPY setup? Is there a co-relation?

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    Justin Bennett says

    There isn’t much of a correlation, no.

    Reply
Chris says

Thanks Justin! Eye opener as always

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    Justin Bennett says

    You’re welcome, Chris.

    Reply
Manuel says

You’re just great Justin… Thank You

Reply
    Justin Bennett says

    My pleasure. Thanks for the kind words.

    Reply
Sumantra kumar halder says

Very very attractive offer

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Matthew Todorovski says

Excellent analysis once again Justin. Thank you for your concise interpretation.

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    Justin Bennett says

    Anytime, Matthew.

    Reply
Jenerali says

this is now in my watch list

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Danmaraya says

Thanks sir. I ve been following trails of events in your analysis. It’s highly educative. You’re great!

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    Justin Bennett says

    Glad to hear that! Cheers.

    Reply
esther ong says

Great analysis. Very much appreciated. Thank you.

Reply
    Justin Bennett says

    You’re welcome. Thanks for commenting.

    Reply
Sadaqat Qahar says

Thank you boss , you are always analyzing it in best manner …

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    Justin Bennett says

    You’re welcome.

    Reply
Mthi says

It also has an opportunity to be a Double Bottom

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Lindiwe says

Thank you Justin, each and every day i learn a lot from you in terms of analysis and patience, You are my mentor.

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    Justin Bennett says

    That’s awesome to hear. And you’re very welcome.

    Reply
Muhammad Aurang Zaib Chaudhry says

What about US Dollar index ? please look into it before making any further decision .

Reply
    Justin Bennett says

    What about it?

    Reply
Kuhan A/L Nagaratnam - says

Excellent as always 😊

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Fan says

Thanks for the writeup, good insight!!

Reply
    Justin Bennett says

    My pleasure as always.

    Reply
      John H says

      Excellent,objective and accurate,as always.Thank you Justin.

      Reply
        Justin Bennett says

        You’re welcome.

        Reply
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