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GBPUSD Determined to Retest Post-Brexit Low at 1.2790

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The GBPUSD looks set to take on the post-Brexit low at 1.2790 as new resistance next week. This comes after the pair punched through the level on October 4th just three days before the pound flash crashed to new multi-year lows.

We’ve been discussing the possibility of such a retest for the last few weeks. Back when the pair was hovering above support at 1.2326, the odds of a 1.2790 retest looked pretty bleak.

Fast forward to today and the GBPUSD is just 120 pips south of the key resistance level.

The 1.2790 handle is joined by a trend line that began three days after the June 24th Brexit. After serving as resistance on three separate occasions the pound broke above the level on September 1st.

But as you can see from the chart below the bullish break was short lived.

So will the pound have enough backers to get through the 1.2790 resistance area next week?

We’ll have to wait to find out.

One thing I can say with certainty is that I won’t be doing anything without the right price action signal.

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gbpusd-confluence-of-resistance

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7 comments
Steve says

The confluent zone is also at a 61.8 retracement from the top of that false break to the recent low, so this area with a PA signal will certainly get my attention too !!

Reply
    Justin Bennett says

    Hi Steve, there is certainly quite a bit happening in the 1.2790 area. Cheers.

    Reply
Abraham Olatubosun says

Hi Steve, with what NZDUSD is doing we will be seeing this pair rally to 61.8% fibo (0.71848) where the pair meet confluence of trend line (of 20th Jan. 2016) and a resistance, so both 0.71673 and 0.71848 may likely push the pair downward

Reply
imi says

Hi dear
Hope you get my prediction of GBPJPY regarding your idea about 144.00 for reversing and now you get 144.00 is not the end of up-trading for this pair though you have to be more careful whenever talking about pairs cause you are sharing your experiences for some novice traders and so you are responsible for giving idea
Have a nice weekend

Reply
Abraham Olatubosun says

hi Imi I think every one is responsible for his/her decisions, when Steve give a setup as the pair get to that zone you look for Price Action to ride on, i have been following his setups and am doing good, he can not be right all the time but when i see his setup i apply Price Action and my mind slogan “Low Risk High Reward” . Thank you and happy weekend all

Reply
    Justin Bennett says

    Abraham, you got it. Everyone is responsible for his or her own decisions.

    Have a great weekend.

    Reply
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