Daily Price Action
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GBPUSD Future Direction Hinges on Today’s Close

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Important: This site uses New York Close Forex Charts so that each 24-hour session starts and ends at 5 pm EST. These charts are essential for trading price action.

The next leg up for GBPUSD is underway.

I first wrote about this bullish breakout on September 4.

Buyers had just cleared channel resistance at 1.2200, which had us watching for a retest of 1.2200/20 as new support.

We got that retest within hours when the September 5 session carved a low of 1.2209.

Then last week ended with a consolidation day that looked relatively bullish.

Here’s what I wrote before the weekend:

Although GBPUSD bulls didn’t quite reach the next resistance level at 1.2380, they are well on their way.

I’m not seeing any signs of weakness despite the latest three-day 400-pip rally.

Friday’s session is set to close red, but so far, it’s just consolidation.

You can see how Friday’s candle fits neatly within Thursday’s range.

Today’s consolidation is also occurring within the upper half of Thursday’s candle, which is a positive sign for buyers.

Quote from Friday’s analysis.

So far, we have a 4-hour close above 1.2380. You can see how this area was previously serving as resistance.

That’s a good start for bulls.

However, I would feel much better about the likelihood of a bullish continuation next week with a daily and weekly close above 1.2380.

Waiting for that to happen is also a non-issue, in my opinion.

You wouldn’t want to buy right now anyway with GBPUSD up over 100 pips on the day.

It’s also Friday which means you would need to hold a new position over the weekend.

That’s never ideal.

So, sitting out a while longer won’t make any difference.

And if you did buy following the breakout I wrote about on the 4th, you’re up 200 pips at the moment.

I also see no reason to exit that position, at least not yet.

That said, if buyers fail to keep price above 1.2380 into this week’s 5 pm EST close, we could see this GBPUSD rally start to unravel next week.

A close above it, on the other hand, would keep the pressure on that 1.2570 region going into next week.

Want to watch a video of how I’m trading GBPUSD?

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British pound vs. US dollar daily time frame

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26 comments
Justin Bennett says

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Vongani Maimela says

Sir Bennett. I salute your skills. You are very helpful n i truly appreciate your effort in helping us out

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    Justin Bennett says

    Cheers. Happy to help.

    Reply
P says

Good one Mr Bennett.

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Fred says

Justin, While I LOVE the technical analysis I am going to be the voice of reason here and just say two phrases that I believe negate a lot of the TA on Cable (GBP/USD)

BREXIT & DEAL OR NO-DEAL

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    Justin Bennett says

    Hi Fred, I appreciate your view. However, I’ve been hearing that same thing for months now and yet here we are with technicals still playing out beautifully.

    Furthermore, to say technical analysis won’t play a role in a deal/no-deal scenario is to say that human psychology will no longer be a factor.

    I can’t agree with that in the least.

    Reply
Dilip says

Is it possible for you to put the time of your post in addition to the date which can be seen.
Thanks

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    Justin Bennett says

    It’s possible, but I don’t see the value in adding that considering I trade from the daily time frame.

    Reply
Hemanth says

Great post! Volume confirms the break of 1.2380. So let’s ride it!

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    Justin Bennett says

    Cheers, Hemanth. Have a great weekend.

    Reply
ali says

Thanks sir justin for the update hopefully we can make some money next week.

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    Justin Bennett says

    You’re welcome, Ali.

    Reply
Tim says

So you think all this movement higher is all price action and nothing to do with getting closer to a deal being done with Brexit that is why the price is moving

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    Justin Bennett says

    Tim, where did I write that?

    That isn’t what I’m saying at all. I’m not sure what made you think so.

    Reply
Ali says

Hi Bennet,
Can you please share outlook for Gold and Silver? Should I buy at current levels? Thanks

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Chidi says

Brilliant analysis from a pro

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    Justin Bennett says

    Thanks, Chidi.

    Reply
irfan says

thanks sir Bennett. loving to learn your method and techniques. its really helping me out . simple yet tension free

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    Justin Bennett says

    You’re welcome.

    That’s the idea. Trading is never easy, but it can be simple.

    Reply
DAVID IFEAJIKA says

Good Sunday Morning, am really impressed with your price action analysis so far. keep learning from you and will soon register for your professional class. You have thought me on having the right attitude in following Price Action Trading Technics, Kudos to You

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    Justin Bennett says

    Good morning, David. That’s great to hear. I look forward to seeing you in the member’s area. Cheers.

    Reply
    Justin Bennett says

    Hi David, that’s great to hear! Hope to see you on the inside. 🙂

    Reply
Samuel says

Thanks Mr Bennett for your insights…how I wish you could touch also on other essentials to profitability…like trading on optimal-f and avoiding risk of ruin, while we cut looses short and let profits run as we pyramid strategically to maximise the performance.

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