Daily Price Action
Shares

GBPUSD Close to Confirming 260-Pip Target

Shares

It looks like we might have our answer as to the pound’s future direction.

The GBPUSD is in the process of taking out the 1.2100 area. Sellers are also challenging recent lows near the 1.2000 handle.

This was a possibility I discussed in Sunday’s forecast.

You can see how this descending channel has directed the price action for several weeks now.

You could use a close below 1.2100 as an opportunity to sell.

But I think a better approach is to see what’s happening on the 4-hour time frame.

If you do that, you will quickly notice a smaller ascending channel.

This isn’t uncommon.

Remember what occurred with the AUDUSD in late July. We had a smaller ascending channel within a larger descending one.

That setup played out perfectly and netted us over 200 pips.

So far, the GBPUSD price action looks similar.

You can also see how the pair just carved a bullish pin bar on the 4-hour time frame.

That candlestick occurred right at ascending channel support.

I’m not suggesting it’s a buy signal. Instead, a pin bar like that tells me the smaller channel below is indeed significant.

In other words, a break below support could trigger the next leg lower for GBPUSD.

And given the broader downtrend here, I’m only interested in shorts.

A close below channel support near 1.2060 followed by a rejection of the area as new resistance would pique my interest.

As I noted on Sunday, the next key support comes in at 1.1800.

Alternatively, a bounce from that 1.2060 support region would target descending channel resistance just above 1.2200.

Want to see how weโ€™re trading GBPUSD? 

Click Here to join and save 40% โ€“ Ends September 30!

Leave a Comment:

17 comments
Justin Bennett says

Now you can get access to the same professional Forex charts I use!

Get access today: http://bit.ly/2UzPyiR

These charts give you five 24-hour sessions each week. They are essential if you trade from the daily or 4-hour time frames. Anything else can produce false buy and sell signals.

Download the platform here: http://bit.ly/2UzPyiR

Reply
Praise says

well noted. thanks a lot .Sir.

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Engr Moses says

Thanks man of God ( Sir Justin).
You are the Forex priceaction prophet of our time.

Reply
    Justin Bennett says

    I’m not sure about that. ๐Ÿ˜‰ But you’re welcome.

    Reply
IDOGEI Emmanuel says

Thank you justin

Reply
POLA P says

Nice one … I see this!

Reply
    Justin Bennett says

    Cheers. Glad you found it helpful.

    Reply
Byron van Rooyen says

Hey Justin, are you seeing the key support at 1.1990 on GBPUSD Weekly?

Reply
    Justin Bennett says

    Sure, I mentioned the 1.2000 area above.

    Reply
Rene says

Good opportunity, thank you. You are really expert, I respect you!

Reply
P says

Good job.
But how can you exactly tell what the price is from the “diagonal supports & resistance” lines

Reply
reuben says

Hellow, In your community are you trading live with your member like where you enter and exist the market?? And this is on dailly basis or every one took his own trade based on your weekly forecast, I real looking foward to join you soon

Reply
    Justin Bennett says

    Hi Reuben, the member’s area is made of up dozens of forums along with a full price action course. There is also a way to direct message myself and other members.

    Reply
Sabelo says

You analysis are perfect but I see they need a lot of perseverance and not rushing things. I will keep on following you and learn from you. Thank you

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Add Your Reply