Daily Price Action
Shares

GBPUSD: The Charts Say Bears Are Wrong

Shares

Everyone seems to want to short GBPUSD in anticipation of a failed Brexit deal.

At least that was the case last week.

But that kind of herd mentality rarely plays out as expected.

And if I look at the charts, I can see why the bearish scenario may backfire, especially when viewing the higher time frames.

I’ve mentioned the GBPUSD multi-decade falling wedge several times on this website, but it’s worth revisiting.

GBPUSD monthly falling wedge pattern
GBPUSD monthly time frame

As I mentioned in Saturday’s forex forecast, if GBPUSD can close this month above 1.3380, it could send the pound much higher in 2021.

On December 3rd, I even wrote that a GBPUSD breakout from the multi-year structure above could target 1.45.

However, buyers need to secure a monthly close above 1.3380 first.

As Daily Price Action members know, I bought GBPUSD on Friday at 1.3140.

Here’s what I wrote in the member’s area:

GBPUSD comment in the Daily Price Action member's area

I exited that trade before the weekend for a 77 pip gain.

As it turns out, the weekend gap would have been in my favor.

Where the GBPUSD goes from here depends heavily on the next Brexit headlines.

That said, the descending channel below could offer some hints from a technical perspective.

If GBPUSD closes a day above 1.3420 or so, it could expose 1.3680.

Just keep in mind that the pair has to get above 1.3480 and close a month above 1.3380 to confirm the breakout from the multi-year falling wedge.

There are many technical factors at play for GBPUSD, but most of them point to a move higher in 2021.

Last but not least, anyone trading the pound should expect continued volatility as the battle of Brexit rolls on.

Want to Watch the GBPUSD Video I Just Released to Members?

Get a Lifetime Membership Today and receive exclusive member-only content including one to two new videos every day. Save 40% in December!

GBPUSD 4-hour time frame

Leave a Comment:

13 comments
Justin Bennett says

Want me to help you become a better Forex trader?

Get a Lifetime Membership to Daily Price Action today and receive access to Justin’s full price action course, dozens of forums with over 4,000 members, daily videos of trade ideas, direct access to Justin, and much more!

Save 40% on a lifetime membership in December!

Reply
Khaleeq Ur Rehman says

Sir Thank you so nice

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Karisa Kimera says

Thank you Mr Justin

Reply
MARTIN MAINA says

You gave in to doubts, i bought the cable on friday too the Gap paid well 265 pips Thanks master looking EURUSD NICE ENRTY already in the boat

Reply
ali says

thanks for the update sir.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Bill Henslee says

you may be right about the falling wedge promising a higher GU in the long term. But for those of us who trade daily price action, the short term is dependent on the US dollar and to the Brexit talks. Right now the dollar looks like it is overcoming a retracement and can continue a northward move —for today. Tomorrow may be different. I am playing the GU for a 128 pip move to around the 132 round number. Just my analysis and I hope no one trades based on it. 🙂

Reply
    Justin Bennett says

    I guess you didn’t see the second chart. Good luck with your trade.

    Reply
Mikey says

Thank You Sir, I really appreciate your trade ideas, I follow them and they actually work out for me.
You are a true forex guru

Thanks many

Reply
    Justin Bennett says

    You’re welcome, Mikey. Glad to hear you’re finding the content helpful.

    Reply
stephen ifeanyi says

this update was what promted me to follow NZDUSD. kindly advice sir, my heart is pounding .
ihv been studing ur signal for some yrs now, bt each time i try to fund to make some profit so i can enrol as a lifetime member, it often turn out bad and made huge loss that wil make it imposible to enrol. i beg u in the name of GOD. my family is suffering , which is why i blv in ur wealth of knowlegde can gv me and my family a good life tru forex. the more i tried to raise money to join ur paid group so as to be eligible to learn from you, is the more i end up lossin money at a flash. for example…. i traded xagusd which is one of ur latest update, bt it end up drifting down to wipe out my account.
sir, i honestly is not blaming ur signal, bt my inability to raise the required fund to learn frm u.
i most admit that i come frm a less privilage family in nigeria, i beg of u for your assist in saving me and my family wt ur wealth of knwledge in forex please

Reply
Add Your Reply