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GBPUSD Shows Early Signs of Reversing

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The GBPUSD encountered selling pressure at 1.2450 on Monday.

I spoke about the 1.2440/50 resistance area in Saturday’s Forex Forecast video.

I also reviewed the potential for a head and shoulders reversal here.

The pattern hasn’t been around for as long as I’d like, as I typically want to see at least three months of topping action, but it could still set up for us.

Of course, the GBPUSD would need to close below the neckline near 1.2300 to signal further weakness ahead and confirm the idea.

That would open the door to 1.2200, 1.2000, and the measured objective near 1.1830.

But don’t lose sight of where we are across markets.

We’ve seen tremendous volatility in recent weeks, so it’s no surprise to see markets in digestion mode.

In other words, don’t expect the GBPUSD to move right away.

I think that’s a key takeaway that can help you in any environment.

Markets will move when they’re ready, not before, and certainly not when you or I want them to.

That’s why I always scale into positions.

The last thing I want to do is put on size only to see the market move sideways or, worse, move against me.

You can always add more later.

In the case of GBPUSD, a close below the 1.2300 area would be the signal to start adding size, in my opinion.

Before that occurs, the pound is one to leave alone, or enter into with a starter position, at most.

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

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GBPUSD 4-hour head and shoulders pattern
GBPUSD 4-hour time frame

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17 comments
Justin Bennett says

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Valentine says

Your trade forecast are boom. Accurate and wonderful. Thanks a lot your GBPUSD forecast was great almost 250pips which got the exact number u mentioned. My God bless and strengthens u

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Michael says

Thanks Justin

Do you have any post where you explained scaling into position please?

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    Justin Bennett says

    You’re welcome.

    Reply
Adam Gains says

Good analysis Justin. Agree that this might be H&S

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Samuel says

Thanks Sir for all you cares and great concern for my success. please accept the assurances of my deepest warm regards.

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    Justin Bennett says

    You’re welcome.

    Reply
sunday says

thanks Justin. To what extent do you think COVID-19 would impact FOREX market?

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    Justin Bennett says

    Sure thing. That question is far too open-ended to answer. Are you asking how currencies will react or what changes will come to retail trading?

    Reply
Naison Ndlovu says

i panicked today and went short .it hit my sl. . . . Good analysis Justin,its now clear

Reply
    Justin Bennett says

    Your stop was too tight for current conditions.

    Reply
sonia says

thanks Justin, I’m learning a lot from your analysis

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    Justin Bennett says

    You’re welcome.

    Reply
Ken Goode says

Im allready a member

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    Justin Bennett says

    Ken, check your spam folder. It was sent to you on April 25th.

    Reply
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