Daily Price Action
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GBPUSD to Turn Bearish Below 1.2960

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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

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12 comments
Justin Bennett says

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mostafizur rahman says

Thank you for help

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    Justin Bennett says

    You’re very welcome.

    Reply
ali says

thanks for the up date sir justin.

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Charles Hendricks says

HAVE DECIDED NOT TO TRADE FOREX. LOOKS LIKE AN EXCELLENT SITE. THANK YOU

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    Justin Bennett says

    Sure thing. Take care.

    Reply
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!

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    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.

    Reply
albert Merejo says

Where can I get your daily setups

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albert Merejo says

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

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Duncan says

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

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