Daily Price Action
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GBPUSD Relief Rally Over?

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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.

GBPUSD is at a pivotal point in this relief rally.

I’ve discussed the significance of the 1.2380 level in recent posts and videos.

It’s the level that supported GBPUSD back on July 17. It then served as resistance between the 9th and 10th of August.

I also mentioned 1.2290 in Saturday’s video.

In fact, I even pointed out that a pullback into 1.2380 and perhaps even 1.2290 this week seemed likely given the recent upward sloping flag.

Watch Saturday’s weekly forecast video for more.

Since reaching our target at 1.2570 (see the September 4 breakout post), the pound has struggled a bit.

This doesn’t mean the relief rally is over, though.

As you probably know, I make decisions on the daily time frame.

Anything that happens before the New York 5 pm EST close isn’t nearly as important as where the market closes, at least for me.

So, if GBPUSD stays above 1.2290 or even 1.2380 on a daily closing basis, buyers are in control, which means I only want to watch for longs.

But if the pair closes below 1.2380, we could see GBPUSD unwind toward the next key support at 1.2290.

As of right now, I’m just waiting this out.

I see no reason to buy the GBPUSD, at least not yet.

I also don’t want to sell given that the pound is hovering between those 1.2290 and 1.2380 support regions.

I also think that as long as the pound is carving higher lows and higher highs, we have to respect the potential for more upside.

If we see the 1.2290 support area break down, then a return to 1.2170 and perhaps even 1.2015 is a very real possibility.

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9 comments
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P says

Good one, Mr Bennett

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Fan says

Would you send me this information every you make it? And how i can join to your telegram??

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Joseph says

Yes I am keeping an eye on GBPUSD and also adjusting a very tight stop-loss. Thank for the reminder.

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Joachim Amodu says

I respect you sir, your analysis is always correct sir. I am happy i am following a trader like you but i am still struggling with my trades sir. I am still having issues with fear and impatience sir and this make me loose my money anyhow. please i need you professional advice sir. thank you. you can see that your prediction about gold today came to pass sir.

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Sifiso says

the trend for the remainder of this quarter is down for the pounddollar…my worry is the obvious head and shoulders pattern it has validated on the 4hr-Chart…I guess the market makers have induced a lot of retail sellers, this worries me because it appears that the smart money is at level 3 OF THE RECENT 3DAY CYCLE( WHICH WAS SHORT)..this means there is a very high probability that they might but and buy hard, hunting the retail traders stops which should be seating JUST ABOVE THE RIGHT SHOULDER….it is just a matter of TIME before they move.

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Sifiso says

Hi Joachim…I have also been looking at gold…the smart money has exploited gold properly..they are now dumping it to trend following and always-late retail traders…they induced them short with that daily-chart head and shoulders, matching the right shoulder of that partten a pin to the high…A lot of retail traders sold and what did smart money then do?..bought and moved price TO JUST above that pin, STOP-HUNT ( FALSE-MOVE WEEK BEGINNING)..they took a lot of retail traders out, while inducing others long and then they moved price swiftly down to the new longs stops. This did not cost the market maker much, because he had to just liquidate his longs to move price down and book a profit…

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