Daily Price Action

GBPUSD to Turn Bearish Below 1.2960


The GBPUSD has erased all of last week’s gains in a matter of hours.

Between Thursday and Friday of last week, the pound rallied nearly 200 pips against the US dollar.

But today’s session is a very different story.

The GBPUSD is off Friday’s close by more than 200 pips and isn’t showing signs of stopping.

If you watched Saturday’s forecast video, you know how adamant I was about the significance of Monday’s open for both GBPUSD and EURUSD.

I mentioned several times how Monday’s open would be telling for both pairs.

More specifically, I stated that a gap down for GBPUSD could signal weakness, especially if sellers start to defend 1.3170 as resistance.

Here is the GBPUSD segment of that video:

Notice how GBPUSD started the week with a 30 pip gap down.

Furthermore, the pound wasn’t able to close that gap within the first few hours of trade.

All of the above is what I eluded to in Saturday’s video.

Given the way GBPUSD has collapsed so far today, a breakdown seems imminent.

Remember, though, that sellers still need to contend with the confluence of support between 1.2960 and 1.3015.

It’s going to take a daily close below that area to expose lower levels.

I use New York close Forex charts, so the “daily close” refers to 5 pm EST. This gives me five 24-hour sessions each week.

Go here to get access to the same chart I use. These are essential for trading price action.

One such level is 1.2770. That will be my first target following a close below the 1.2960 region.

Below 1.2770, we have 1.2570.

As a side note, today’s weakness from the pound has lit the fire under EURGBP, which I wrote about on Friday.

I maintain the idea that EURGBP has bottomed, and the latest selloff from the pound only helps to confirm my suspicion.

As for the GBPUSD, a daily close below the 1.2960 area would confirm the reversal and open the door to 1.2770 and perhaps 1.2570.

Want to watch the GBPUSD video I just released in the member’s area?

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GBPUSD breakdown on the daily time frame

Leave a Comment:

Justin Bennett says

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mostafizur rahman says

Thank you for help

    Justin Bennett says

    You’re very welcome.

ali says

thanks for the up date sir justin.

Charles Hendricks says


    Justin Bennett says

    Sure thing. Take care.

POLA P says

Never seen anything like this! What could be the catalyst of this Engulfing scenerio? It is too much!….Thanks a lot for your analysis. Your videos are good!…keep it up!

    Justin Bennett says

    The catalyst doesn’t matter to me. I only care about the market’s reaction, also known as the price action on my chart.

albert Merejo says

Where can I get your daily setups

albert Merejo says

I apologize, thank you for all the insight to the forex market

Duncan says

Hi Jusitn, i have been a losing trader for six months. Can i contact you personally?

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