Today I’m going to show you exactly how I’m trading GBPUSD this week.
I’ll discuss a possible long trigger, and key levels and targets.
I’ll also share the latest on the US Dollar Index (DXY).
Watch the video below and scroll down for the annotated charts and analysis.
GBPUSD is showing signs of relief this week, starting with Monday’s close above the 1.2200 level.
That’s been a pivot for the pound since February, so Monday’s close could indicate that last week’s close below it is a fakeout.
If so, it would likely mean GBPUSD heading back to 1.2310 and possibly higher.
The key for GBPUSD bulls is to hold the pair above 1.2204 at today’s 5 pm EST close.
That would give us two daily closes back above the level and open up the 1.2300 high.
However, any longs here have to be careful with the US Dollar Index (DXY) still above the 105.60 key level.
It’s one I’ve discussed with VIP members for months, and was the technical catalyst for last Thursday’s DXY rally.
So if GBPUSD can close above 1.2204 today, the pair could see 1.2300 in the coming days, but keep a close eye on DXY 105.60.
On the other hand, a GBPUSD daily close below 1.2204 would keep the level intact as resistance.
That said, any shorts here are ill-advised, in my opinion, due to channel support that comes in at Tuesday’s low.
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