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GBPUSD Needs More Time to Reset

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The GBPUSD is struggling to find its way.

We no longer have the bullish momentum that was present in late 2019, and sellers haven’t been able to sink their teeth in, at least not yet.

But the indecision isn’t surprising.

The GBPUSD has produced some stellar opportunities over the last few months.

We had the break above descending channel resistance on September 4, 2019. That led to the 800-pip October 2019 rally.

Then came the breakout from the consolidation between 1.2770 and 1.2980 on December 3, 2019.

We were fortunate enough to catch that one in its entirety.

So some choppiness and indecision from the pound is warranted after moves like those.

If you’ve been at this game for a while, you know that there is a time for trading, and there is a time for doing nothing.

Doing more of the latter is what will get you ahead in this business.

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Growing an account means doing less of the thing that makes you money.

It’s completely counter-intuitive.

That’s part of the reason why over 90% of those who attempt trading fail to make money consistently.

In fact, I think it’s a primary reason so many retail traders fail.

Doing nothing is harder than trading, yet it’s the doing nothing part that separates those who grow accounts from those who don’t.

Okay, so how does all of this relate to the GBPUSD?

As I mentioned at the top of this post, the British pound isn’t doing much these days.

And I don’t expect that to change anytime soon.

In my opinion, we aren’t likely to see another opportunity develop until we get a rotation into the ascending channel support below.

That could involve sideways price action above 1.2980.

Or, it could mean a deeper correction to 1.2900 or thereabouts.

Either way, the pair needs more time to “reset” itself following the massive 1,500 pip run-up that began last September.

Will GBPUSD be a buy once it reaches ascending channel support?

To be determined.

It will largely depend on how this pullback unfolds.

An aggressive pullback would hint at further weakness, while a more gradual decline could keep things constructive for the pair.

Regardless, the GBPUSD needs more time before it’s worth trading again.

Want to watch the GBPUSD video I just released in the member’s area?

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GBPUSD ascending channel showing support and resistance areas

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6 comments
Justin Bennett says

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Olakareem abdulkareem says

I love your posts. You are very right sir. Even though I’m a novice, just five days into learning how to trade. The currency pairs stated above from my study suggest that the market is preety uncertain and any accountable trade action at the moment does not give a green light. Keep the good work up sir.

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    Justin Bennett says

    Cheers, Olakareem. Thanks for stopping by.

    Reply
Nkululeko Nkulu says

We’ll sir I wrongly agree with you on that about GBPUSD I myself saw two possibilities last December but had to hold nothing and see how it plays off and so far looks like bears are taking over but let’s wait and see how the week closses.

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    Justin Bennett says

    Disagreements are always welcome.

    Reply
HIGHLANDER says

Thank you Mr Bennett for the good job you are doing, KEEP IT UP. Please can you look at the weekly candles, the two last candles are pin bars (an indicative of a shorting opportunity) or what do you have to say?

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