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GBPUSD Still Vulnerable Below Year-to-Date Trend Line

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GBPUSD continues to hold below the trend line from the year-to-date low.

This level had been keeping the 2019 rally alive. However, sellers cleared trend line support on March 28th.

Since that time, we’ve seen it attract sellers.

Although Wednesday’s session spiked above former trend line support (new resistance) on an intraday basis, the pair failed to close the day above it.

This is why I’m always on about the importance of New York close charts.

Notice how yesterday’s 5 pm EST close was just below the trend line near 1.3160.

Today’s session also spiked above the level, but GBPUSD is currently well off session highs.

In fact, the pair has already taken out Thursday’s low.

But the real test for sellers still stands in the 1.3010 region. The area has supported GBPUSD since February 22nd.

It’s likely going to take a daily close below it to open up downside targets including 1.2920 and 1.2800.

My guess is we will continue to see the choppy and indecisive price action continue for some time.

After all, it’s what the GBPUSD has done for nearly a year now.

That said, I remain bearish here as long as the pair is below this trend line that extends from the year-to-date low.

In my experience, any trend line that commences with a year-to-date low or high is significant, and I have no reason to believe this situation is any different.

IMPORTANT: I use New York close charts so that each day closes at 5 pm EST.

Click Here to get access to the same charts I use.

GBPUSD new resistance area

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18 comments
Evans says

Thanks Justin……what are your views on GBP/jpy. I’m short on the pair and thinks all GBP pairs are going short. Pls what’s your thought. Thanks

Reply
    Justin Bennett says

    I guess I don’t group pairs together like that. I don’t have much of an opinion about GBPJPY at the moment.

    Reply
Justin Bennett says

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    Sina says

    I appreciate your work !

    Reply
      Justin Bennett says

      Cheers, Sina.

      Reply
Vince says

Thanks man

Reply
    Justin Bennett says

    You’re welcome, Vince.

    Reply
Chris says

I agree with your bearish outlook. Thanks again!

Reply
    Justin Bennett says

    You’re welcome. I think it might be better to call it a “cautiously” bearish outlook as GBPUSD is still limited by its current range.

    Reply
      Chris says

      Patience trumps all!

      Reply
Emmanuel says

hi!!! your analysis are awesome… Greetings from Nigeria. Thanks a lot

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Adebayo Saheed says

grate

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Matt says

Thank for your insights Sir

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PETER OMOLO AWINO says

Thank you so much sir and be blessed for the good work.

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Steve says

Thanks Justin, I just went short on the gbp/usd because I believe it just hit support at the level you indicated 1.30….I also expect it to be further bearish eventually

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    Justin Bennett says

    You’re welcome.

    Reply
Alonzo Munyeneh says

I have been following you and I appreciate the analysis. I paid for the course but I still don’t have access. What’s going on?

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    Justin Bennett says

    Check your junk/spam folder.

    Reply
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