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The GBPUSD has clawed back lost ground so far this week.
It comes following last week’s 300 pip plunge below two critical levels.
The first was the trend line that extends from the November 2019 low.
I wrote about this level on February 5th.
It was last Monday’s 1.2998 close below this level that allowed me to get short at 1.3044, an entry I announced in the member’s area last week.
The GBPUSD also closed below the ascending channel that extends from the 2019 low last week.
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Sellers confirmed that breakdown on February 6th.
As long as the GBPUSD trades below that 1.3000 area on a daily closing basis, my bearish bias is intact.
Key support remains the 1.2770 area.
You can see how it served as support for the GBPUSD in October and November of last year.
It’s going to take a daily close below that 1.2770 area to expose the next key support at 1.2570.
But all eyes are on the area between 1.2980 and 1.3000.
GBPUSD bears must hold the pair below that area on a daily closing basis.
The “daily closing basis” refers to the 5 pm EST daily close. These are referred to as New York close charts and are essential for trading price action.
Go here to get access to the same Forex charts I use.
If they can’t and the GBPUSD closes back above 1.3000, we could see the pair trend higher.
Just remember that buyers would still need to deal with the bottom of that ascending channel that extends from the 2019 low.
I’ll stay bearish GBPUSD until the market proves otherwise.