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GBPUSD Clears Wedge Resistance, Targets 1.2880

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GBPUSD may have just cleared wedge resistance from the November high.

We’ve been tracking this level since December 3rd. However, despite the volatility, market participants have been unable to break free on a daily closing basis.

Until yesterday that is.

GBPUSD first cleared trend line resistance at the 1 pm EST close. But as I’ve mentioned a few times recently, the daily time frame is critical here.

As such, we were waiting for the New York close at 5 pm EST.

Buyers managed to get the job done there as well. In fact, you can even see where GBPUSD tested former resistance as new support at 1.2770 a few hours before yesterday’s close.

Now that we have a daily close above the 1.2750/60 region, we could see the pound move back to the 1.2880 resistance area.

Yesterday’s bullish break also suggests the 560-pip range will remain intact a while longer. I’m referring to the area between 1.2700 support and 1.3260 resistance.

There are a couple of things to keep in mind if you plan on trading GBPUSD though.

The first is tomorrow’s non-farm payroll (NFP). It hasn’t been moving markets quite the way it used to, but it’s still an event you shouldn’t ignore.

The second event promises to be much more impactful than NFP.

I’m referring to the December 11th Brexit vote.

While the outcome won’t rock GBPUSD the way the referendum did in June 2016, it will no doubt shake things up for the pound.

And not just on the 11th, but the days leading up to the vote as well.

I’ll let you decide what to do with that information. At the very least, I’d say it calls for a smaller position size.

As for the technicals alone, things look relatively bullish for now. The key will be whether or not bulls can keep GBPUSD above 1.2750/60 over the coming sessions.

If they do, our attention will swing to 1.2880 and perhaps even 1.3070.

And if GBPUSD closes the day back inside this wedge pattern, it’s back to range support at 1.2700.

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GBPUSD wedge pattern on 4-hour chart

Leave a Comment:

33 comments
POLA P says

Vote of thanks Mr Justin Bennett

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Tarun says

Fantastic

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Alan says

Hi Justin,
I’m happy for events to prove me completely wrong however, I’m not as convinced as you appear to be about the bullish nature of the current setup.
In that regard I would point to several recent days when attempts at up moves have been strongly rejected which suggests to me there’s no great enthusiam at the moment for an up move.
While I note the most recent 5pm close is in the right direction even that failed to close at or very near near its high which is something I would have expected if there was a serious up move being planned in the very short term.
Perhaps some more sideways movement can be expected.
I think your advice about caution and small position size is very appropriate.

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    Pierre Mifsud says

    I have been trading for 15 years now and it has not been too rosy for me absolutely regardless of being a professor…..trading is not easy unless you are ready to learn and patiently wait……but one thing i know is that you cannot work in isolation….that is, you have to seriously study also what is happening with the other pairs where GBP is involved and predict a possible outcome with all the tools we can utilize. Pairs like EURGBP , GBPNZD, GBPAUD etc…etc….all show that GBP should be clearly BOUGHT at least for now. As for the GBPUSD no exception a clear falling wedge with a broken wedge resistance points north….what more you want!!!

    Reply
      Al says

      It is sensible to note what is happening on other GBP pairs without overlooking where the current daily trends lie, which appear to be mostly against GBP at this time.

      Remember that markets move for fundamental reasons and It is highly likely that the British Government will lose the vote on the 11th December which could be interpreted either way, (the initial reaction could well be bullish, tho unlikely to last for too long) resulting in unpredictable volatility which will be to the benefit of market makers mostly.

      Remaining on the sidelines is probably the best course of action for GBPUSD until it breaks from it’s current consolidation between 1.2700 – 1.300/50

      Reply
    Justin Bennett says

    Hi Alan, I’d counter by saying I’m not as bullish or enthusiastic as you seem to think. We could very well see more sideways movement.

    Reply
Emuobo says

Great job

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Giorgio says

thank Justin

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    Justin Bennett says

    You’re welcome.

    Reply
Muhammad Aurang Zaib Chaudhry says

Couple of days ago at Forexfactory , I saw your GbpUsd trade , and opposed it , I said it is Long when you were considering it short . Your way of mentioning trades is as slow as snail , more over your TPs are NOT to the mark , 1.2880 is a no brainer way . I am sure it will hit 1.3000 . Boy , still you have to learn a lot .

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    Paul says

    Well, thanks to the trading way of Justin I am at a 50% profit as from March this year. In my 25 years of trading I followed a lot of scammers, none of them gave me such a return, they only blew my accounts. One advise to you, keep your comment just and only for yourself and maybe you should stop following this channel.

    Reply
      Justin Bennett says

      Cheers, Paul. Thanks for sharing that, and well done!

      Reply
    Adeyemo John oluwafemi says

    you dont need to follow daily price action boy if you know you better. Ride on Sir Justin. You the best.

    Reply
      Justin Bennett says

      Thanks, Adeyemo.

      Reply
    Pierre Mifsud says

    I think you are the one with NO brains ……Justin has mentioned the 560 pip range in sight up to the 1.3260….in this documentary….he mentioned 1.2880 only as the next hurdle or Fibonacci ratio to come…..if you go up the stairs you have to go step by step up hitting one target profit after another otherwise you will finish with nothing…Learn also to respect others’ opinions in this industry

    Everyone makes mistakes sometimes, but with my 15 years of trading experience I place Justin among the elite group of traders in the world…..

    Reply
      Justin Bennett says

      I appreciate the support, Pierre.

      Reply
    Justin Bennett says

    Muhammad, glad to hear you can think for yourself.

    Slow and steady wins the race, my friend. I’m in no rush.

    And you’re right; I do have a lot to learn even after 16 years of trading. We all do. Anyone who says otherwise is a fool.

    Reply
    John says

    I agree with you Paul. Either Mr Chaudhry misread Justin’s comments or he hasn’t been following him long enough to understand his Methods and style of analyzing the markets.

    Reply
Aushazu Mukhtar Dahir says

Wow! You really impress too much, your setup its really correct and I continue being happy staying with you guys,thank you a billions time

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    Justin Bennett says

    You’re welcome a billion times. 🙂

    Reply
Chris says

Keep up the good job Justin. You appear to be too resolute to be sidetracked by any snide comments here…

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    Justin Bennett says

    Will do, Chris. Thanks for the support.

    Nothing sidetracks me these days. After running this site for 5 years and reaching over a million traders, I’ve heard it all.

    Reply
Ninja Trader says

The big boys might break the resistance first. Then when everybody is long…. they will short it. and make profit 🙂

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Din Mercun says

Very clear ! Good. Thank you

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    Justin Bennett says

    You’re welcome.

    Reply
Antony Morgan says

trend line is wrong

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    Justin Bennett says

    Looks good to me so far, but you’re free to “correct it” on your chart. 🙂

    Reply
Michael tascillo says

Thanks you are very helpful.

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    Justin Bennett says

    Glad to hear it, Michael. Thanks for posting.

    Reply
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