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GBPUSD Determined to Finish 2018 on a Positive Note

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GBPUSD bulls are finally on the move after weeks of consolidation.

Today’s surge isn’t a surprise though.

Since December 21st, I’ve been discussing how the market has refused to sell off from 1.2700 resistance. That alone suggested an eventual move higher.

Furthermore, Friday’s session ended just below 1.2700 after a bearish rejection candle on the 26th.

Another indication that buyers were soaking up all offers below the 1.2700 handle.

But today’s session isn’t over. Far from it.

If you’ve followed me for a while now, you know that I like to use the daily close at 5 pm EST to confirm breakouts like this one.

I use “New York close” charts where each session closes at 5 pm EST. These charts are essential for trading price action.

Go here to get instant access to the same New York close charts I use.

Until a daily session closes (5 pm EST) above 1.2700, today’s rally is open to interpretation.

This is especially true in low liquidity conditions like the ones we’re in right now due to the holiday season.

A daily close above 1.2700 would expose 1.2800 followed by 1.3070.

In fact, there’s a good chance GBPUSD could trend toward the 1.3070 resistance area if buyers clear 1.2700 today.

Here’s why I think so:

GBPUSD member's area comment

This was a comment I made in the member’s area back on December 12th.

It seems channel support is having its way with this market. As such, a move to the confluence of resistance up around 1.3070 seems likely.

But first, GBPUSD buyers need a daily close above 1.2700. A failure to do so would keep the pressure on the 1.2560 support area.

Keep in mind too that the descending channel you see below is inherently bullish. So a move to 1.3070 might be just the start of a larger 2019 rally.

Next year promises to be an exciting one for both GBPUSD and EURUSD.

Save 40% on a Lifetime Membership to Daily Price Action – Ends December 31st!

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GBPUSD daily chart showing support and resistance

Leave a Comment:

36 comments
Chris says

Thanks Justin. Happy new year in advance mate!

Reply
    Justin Bennett says

    Cheers. Happy New Year.

    Reply
IBRAHIM MUHAMMAD says

That’s great analysis.
But I remember, you said anything GBP is not advisable to be touched until after the Brexit deal, preferably.
Is it safe now?

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    Justin Bennett says

    I said it would be a volatile currency. Whether or not you’re okay with that is up to you.

    Reply
Maureen says

Thank you very much.

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    Justin Bennett says

    You’re welcome.

    Reply
POLA P says

nice one

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POLA P says

happy nu year to you all

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    Justin Bennett says

    Happy New Year!

    Reply
Nongcebo Ntuli says

Its been great having your support, thank you. May 2019 be a fruitful year to you and all the community you supporting.

Reply
    Justin Bennett says

    It’s my pleasure. Happy New Year.

    Reply
World's best trader says

Well said, GBPUSD is retracing to 1.3070 and does not look like the downtrend is over yet.

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    World's best trader says

    GBPUSD taking out long SL or continuing the downtrend? Not sure at this point till after NFP on Friday.

    We watch.

    Reply
POLA P says

thanks Mr Justine…ur eye opening analysis is highly appreciated

Reply
    Justin Bennett says

    You’re welcome.

    Reply
Chee Meng Ng says

Thanks very much for the guidance in 2018. Happy New Year.

Reply
    Justin Bennett says

    Cheers. Happy New Year.

    Reply
Bokang says

Great analysis as usual Justin and happy new year

Reply
    Justin Bennett says

    Cheers. Happy New Year.

    Reply
Lou1010 says

I see this break out as a fake break out.Look at US Index you will that there is two gap ups that need to be cover.This could be due to government shutdown.And the explain why Euro/Usd is the moving that up.Mind you,that there is a big event on GBP on 9th of this month.Happy New year.

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    Roy peters says

    We will wait and see.

    Reply
    Justin Bennett says

    We’ll see. Happy New Year.

    Reply
Kabelo says

First time on this platform am new to this forex world but you making sense lets see what happens on GBP/USD

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Oladimeji says

Appreciate all your good works sir thank you so much…happy new year.

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    Justin Bennett says

    Happy New Year.

    Reply
BASSEY says

In the previous years you were great in analysing the forex market and we appreciated you, in this new year you will be greater in Jesus name. Happy New year.

Reply
    Justin Bennett says

    Cheers. Happy New Year.

    Reply
louis1010 says

i said this that the break out is fake.

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Louis1010 says

I see this break out as a fake break out.Look at US Index you will see that there is two gap ups that need to be cover.This could be due to government shutdown.And that explain why Euro/Usd is is not the moving that up.Index gap up need to feel @ 96.575.
Mind you,that there is a big event on GBP on 9th of this month.Happy New year.

Reply
    Justin Bennett says

    The DXY has already broken down.

    Reply
Prasanna says

How many pips SL should we keep on these trades?GBPUSD has fallen.

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    Louis1010 says

    lol

    Reply
    Justin Bennett says

    There was never a setup here, at least not for me.

    Reply
Tinh says

thanks

Reply
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