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GBPUSD closed above a significant level last Friday.
I’ve discussed the significance of 1.2980 several times in recent weeks.
However, if you saw the latest weekly forecast, you know that I was hesitant about this breakout occurring on a Friday.
In fact, I’m always skeptical of Friday breakouts, something that DPA members hear often.
The issue is that volume tends to dry up before the weekend.
That lack of volume means any breakouts are less reliable.
At least that’s the general rule of thumb.
As for GBPUSD, you can see where the pair just closed back below 1.2980, which suggests Friday’s breakout was false.
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It also means the pound may be heading lower.
Just remember that the higher time frames hint at an eventual turn higher.
I wrote about the monthly chart above on October 5th.
But the pattern above may take months to play out.
In the meantime, as long as 1.2980 holds as resistance, GBPUSD may want to retest 1.2670.
That’s something I discussed last weekend.