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GBPUSD Sellers Need to Get Through 1.2800

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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.

The GBPUSD is down big for the fifth day in a row.

In fact, the pound has been down in eight of the last nine trading days.

And for those of you who caught the May 6th sub 1.3110 close and retest at 1.3120, you’re staring at more than 300 pips worth of gains.

I wrote about this selling opportunity on May 6th.

So where to from here?

Well, yesterday’s candle broke the previous swing low near 1.2880, and today’s session it testing the next key support at 1.2800.

The latter supported GBPUSD in mid-February. It also served as a pivot in late December and early January.

If sellers can get through the 1.2800 area, we could see GBPUSD extend lower toward the 1.2700 handle.

Notice how this level attracted a bid last October. It also served as a pivot throughout December and January.

Below 1.2700 there isn’t much until 1.2480.

However, I’d be careful trying to short GBPUSD at this point.

If we draw a descending channel starting with the March high, you can see how the lower level intersects with the current intraday low.

Whether or not GBPUSD catches a bid here is yet to be seen.

But I wouldn’t want to be shorting the pair into potential support. I also don’t want to buy given the recent weakness.

The pound is getting stretched here considering the 160 pips between today’s price and the 10 and 20 daily EMAs.

All in all, it may be best to stand aside to see what happens in the 1.2800 region.

Shorts who caught the May 6th selling opportunity have had a nice run, but sellers may need some time to regroup before GBPUSD is ready for the next leg lower.

And buyers may have ideas of their own in the meantime.

Want to see how we’re trading GBPUSD? 

Click Here to join us and save 40% – Ends May 31st!

GBPUSD daily time frame

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15 comments
Justin Bennett says

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Uzoma Nnamdi says

I just love how you see this patterns sir

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    Justin Bennett says

    Cheers.

    Reply
Mohamed FadL says

Awesome approach.

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    Justin Bennett says

    Glad you like it.

    Reply
Adebayo saheed says

Thanks Justin….the way u always patterns is awesome

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    Justin Bennett says

    You’re welcome.

    Reply
Euphemia Nwachukwu says

Hi Justin, thanks for your commentry on this pair, i sold this pair and took my tp on this very point 1.2800. I am out of it for now until i see a break out of this level. You are a great coach.
Remain Blessed.

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    Justin Bennett says

    Cheers. Well done.

    Reply
Tshiamo says

Thanks alot…..

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    Justin Bennett says

    You’re welcome.

    Reply
Emeh says

There is amixup here. Gbpnzd or Gbpusd?. pls clarify. Thanks

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    Justin Bennett says

    What mix up? You’re on the GBPUSD post from yesterday.

    I just posted about GBPNZD a few minutes ago here:

    https://dailypriceaction.com/daily-setup/gbpnzd-staying-short-below-1-9670/

    Reply
      Frano says

      E-mail we receive was about GBPNZD and we you click it it redirect you here on GBPUSD.
      That is the mix up.

      Reply
Hymano says

Definitely a mixed up. The link is meant for Gbpnzd.

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