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GBPUSD Sellers Break 1.3460, but Daily Close Is Key

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Important: I use New York close charts so that each 24-hour period closes at 5 pm EST.

Click here to get access to the same charts I use on this website.

The GBPUSD is finally making its move. Since the 2nd of May, the pound has been confined to a 140 pip range between 1.3460 support and 1.3600 resistance.

At the moment, sellers have extended today’s lows to levels not seen since late December of last year. However, with six hours to go until the session close at 5 pm EST (New York close charts), anything can happen.

Of course, if you think a 4-hour close below 1.3460 is enough to get the job done, then the GBPUSD has already broken down. As for me, I’ll need to see a daily close below the level before further deliberation.

If sellers manage a 5 pm EST close below 1.3460, I’ll begin watching for a retest of the area as new resistance. Depending on your outlook here, that retest could present an opportunity to get short.

The next key support level comes in at 1.3300. It’s a significant area for the pair as you can see from the price action between mid-October and December of last year.

It’s a waiting game for now, but a daily close below 1.3460 could open up 160 pips of real estate, so it could be worth the extra patience.

Bear in mind that we could see an increase in volatility during Wednesday’s release of the FOMC meeting minutes at 2 pm EST. There are several scheduled speeches from the BOE’s Carney in the final 48 hours of the week that could also shake things up.

Additionally, Fed Chair Powell is due to speak on Friday at 9:20 am EST, the same time as Carney. Be sure to check the event calendar for further details on these events.

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GBPUSD horizontal levels on the daily chart

Leave a Comment:

21 comments
Martín Félix says

Hi Justin, thanks a lot for your post! They are excellent!

It seems GBP is down and other graphics as GBPCHF has closed its support.

Question: In this contexto of GBP down, do you check all GBP graphics in order to see more benefit one?

Thanks!!

Regards!!

Reply
    Justin Bennett says

    You’re welcome. Glad to hear that!

    Not necessarily. I tend to gravitate toward whatever pair is carving the best technical levels. In other words, I put more emphasis on the quality of the technicals than I do relative strength among currencies.

    Reply
MI Lad says

Thanks dear Justin

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alphonsus chukwu says

Thanks my boss you are always on course doing the right work to help people. I wish one day I will be one of your membership

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Sera m says

Thanks

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Thomas says

Hi justin…..when one GBP PAIR goes down does that mean all GBP pairs are going bearish as well ?

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    Justin Bennett says

    No, there are two currencies to account for, so you need to evaluate each pair on its own merits.

    Reply
derrick says

i cant wait going short over it because h have been eyeing it since morning

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Felix Chijioke says

Please I want to understand your analysis am finding it difficult. Given by this GBPUSD so you mean break of resistance level of 1.3460 is buy signal and break of support level of 1.330 is sell signal

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    Daniel says

    Hi Felix,

    You may have to exercise some caution so you don’t lose money unnecessarily. I don’t think that Justin insinuates a ‘buy’ in his analysis. Please be sure before you place orders.

    Reply
Khaya says

Justin whay do you think of GBPNZD I have been holding it since last Friday after starting to stall.

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    Justin Bennett says

    It’s on my radar. I’ll post about it later if I have time.

    Reply
Shah says

Thanks Justin for posting such an amazing analysis.
question regarding placing stop loss: where to place stop loss considering GBPUSD’s recent move, a little bit higher Monday’s high or Friday’s high?

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28 says

Hi Justin, Great analysis as usual, Much appreciated. I really find your trading style very relaxed and straight to the point as it focus on logic and ignore the noisy nitty grittys. Thank you very much and god bless.

Reply
    Justin Bennett says

    You’re welcome. That’s the idea…keep it simple!

    Reply
28 says

Hi J, how do i include the USD INDEX in my trading analysis, how important is it, and how does it affect my trading of the currencies that are paired against the USD? Thank you.

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Thabang says

Thanks a lot Justin, much appreciated.

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Deshy says

Why dont you analyse AUD/USD and GBP/AUD…great opposites. They provide good opportunities

Reply
    Justin Bennett says

    I do, but I also only put out one to two commentaries each day.

    Reply
Vik says

Great work Justin, please whats your take on Audusd HSH pattern formed?

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Daniel says

Hi Justin,

Thanks for your support. I have also been monitoring this pair. The retest has taken place on a 1h chart. You still seeing a good ‘short’ prospect?

Reply
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