GBPUSD Future Direction Hinges on Today’s Close

by Justin Bennett  · 

September 13, 2019

by Justin Bennett  · 

September 13, 2019

by Justin Bennett  · 

September 13, 2019

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.

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British pound vs. US dollar daily time frame

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  1. 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)


    1. 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.

  2. 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

  3. 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

  4. 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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