Daily Price Action
Shares

GBPUSD: A Way to Capitalize on Pound Strength or Weakness

Shares

Important: I use New York close charts. Click Here to Use My Preferred Broker

Over the weekend I discussed how the GBPUSD is likely in need of a pullback before the next leg higher can begin. The same goes for the EURUSD.

Both pairs are trending lower to start the week with the GBPUSD off of Friday’s close by 60 pips. Buyers didn’t quite make it back to the 1.4070 resistance area, but today’s high of 1.4049 is relatively close.

If you’re still in search of a way to trade pound strength or weakness, the 4-hour price structure below might help.

While it is true that the broader trend is still bullish, the smaller ascending channel within the larger descending channel hints at further weakness.

As I mentioned yesterday, I believe that the EURUSD and GBPUSD need to cool off some before buyers are ready to have another go. Both have experienced considerable gains in recent weeks including the pound’s 900 pip rally in the second half of January.

From a technical standpoint, if GBPUSD sellers can close the pair below ascending channel support near 1.3850, it would expose the 1.3600 support area. Both are horizontal levels that I’ve had on my chart for several months.

On the flip side, a close above descending channel resistance could offer an opportunity to get long. That said, I would like to see some additional consolidation and a 1.3600 print before I consider buying the GBPUSD.

Free Webinar: Learn how I trade pin bars, draw key levels, and much more! 

Click Here to Register

GBPUSD channels on the 4-hour chart

Leave a Comment:

17 comments
zaibi says

It means this is lower

Reply
sourav says

I can sell here

Reply
    Mduduzi says

    not at this stage, it is the pull back, i recommend you wait for a perfect signal

    Reply
Sumantra Kumar Halder says

helpfully post.

Reply
Akinfela Olufemi says

You’re too much. I always look forward to receiving this mail. Very insightful. Thanks.

Reply
shahbaz says

niece dear

Reply
Rana says

Good

Reply
DAVID says

I actually plotted My exactly like that on sunday, Thanks to Justine`s Knowledge about trendlines and support and resistance…..Thanks Justine(Forex Oracle)

Reply
Ambassador says

GBP/USD is bullish from 0.7896 to 79860

Reply
Roy Peters says

Long term out looking to buy here. Thanks Coach.

Reply
Ibrahima says

Good

Reply
D.BABUNARAYANAN says

Thank u sir for your valuable guidance

Reply
derrick says

i think some one has to be alittle bit patient before placing those pairs

Reply
samiir says

Hi

Reply
AKEEM OGUNBIYI says

THANKS,
U ARE ALWAYS ON POINT

Reply
Jeranomo says

Thank you sir

Reply
Harsh says

Is it a daily close below or above the channel or 4H close? Please clarify.

Reply
Add Your Reply