GBPUSD Confirms Top but Future Direction Hinges on DXY 103.50

by Justin Bennett  · 

June 29, 2023

by Justin Bennett  · 

June 29, 2023

by Justin Bennett  · 

June 29, 2023

Today I’m going to show you exactly how I’m trading the GBPUSD.

I’ll share a confirmed fakeout from the pound that could send the market much lower later this year.

Check out the GBPUSD video below and scroll down for the annotated charts and analysis.

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GBPUSD sold off aggressively on Wednesday, confirming a fakeout I’ve discussed for weeks.

The recent move above 1.2740 was a significant moment for the pound.

It’s an area of confluence that dates back to 2020, and the August 2022 trend line.

However, Wednesday’s rally stopped shy of removing the 1.2630 support area.

So, for now, that’s key support for GBPUSD on a daily closing basis.

A sustained break below that opens up my first target at 1.2550.

I’ve discussed this several times, including last weekend’s Weekly Forex Forecast.

Remember to watch the US Dollar Index (DXY) and the confluence of resistance at 103.50.

That’s the September 2022 trend line, a key horizontal level, and the yearly open for the dollar.

I expect selling pressure from that region, but a sustained break above it would represent a significant dollar breakout in the coming days.

As for GBPUSD, a daily close above 1.2630 on Thursday keeps the level intact as support and exposes the 1.2700 resistance area.

Alternatively, a daily close below 1.2630 on Thursday flips it to resistance and has me watching for shorts on a sustained break below the 1.2550 trend line.

See the video above for all of the details.

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