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GBPUSD Moves to Test 2014 Trend Line Resistance

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Last week GBPUSD bulls pulled off a major victory. The 1.3290 handle has capped every advance since the pair closed below it on October 2. So, last Wednesday’s close was significant in that it broke the two-month range.

However, as I mentioned over the weekend, buyers still have their work cut out for them. The trend line that extends from the 2014 high continues to serve as resistance. That level comes in between 1.3370 and 1.3400.

GBPUSD trend line resistance on the weekly chart

That same trend line was partially responsible for rejecting the mid-September advance. And because it has directed price action since 2014, a breakout would be a significant development for the pair.

Do keep in mind that there is a horizontal level just above current prices at 1.3445. It’s the September 2016 high and was an area that rejected several rallies shortly after the infamous Brexit vote last year.

With that in mind, it may not be a bad idea to wait until the GBPUSD clears 1.3445 on a daily closing basis. Doing so would provide additional confirmation that prices have broken the 2014 trend line.

For now, though, the pound sterling remains range bound between 1.3290 support and 1.3370/400 resistance. A daily close above the latter would expose the 1.3445 resistance area followed by 1.3640/50.

Alternatively, a daily close at 5 pm EST back below 1.3290 would tarnish the bullish scenario. It would also re-expose channel support, which now comes in somewhere between 1.3180 and 1.3200.

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GBPUSD support and resistance levels

Leave a Comment:

9 comments
Jay says

I went long here at the break of the range channel on an h4 basis though..

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Levis says

Thanks Justin, I still remain bearish on this pair until it hit 1.30253

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    Justin Bennett says

    You’re welcome.

    Reply
Jek says

Where is nzd USD going

Reply
Weal says

Thanks Justin, me also imagine this scenario, but i think and (hope) to go bearish soon, i sold much here 🙂

do you think that?

Wael
From EGYPT first year forex trader

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Mohammed says

P.S
Dukascopy Bank announce about this article, but via a different site
forex factory :
https://www.forexfactory.com/news.php?do=news&id=718370

is this forum belong to your site

Thanks

Reply
    Justin Bennett says

    Forex Factory often publishes my content. I’m not sure what that has to do with Dukascopy, though.

    Reply
Roy says

1.36468 I will go long as technically Gbpusd will potentially go on to make a higher high. Hopefully will not jump the gun on this pair.

Reply
Martin says

Hello Justin, what do u think about AUDNZD Now that it has broken the trend line support on daily chart. Is it advisable to sell.

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