Daily Price Action

GBPUSD to Weaken Further While Below 1.2980


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.

It also means the pound may be heading lower.

Just remember that the higher time frames hint at an eventual turn higher.

GBPUSD wedge on the monthly chart
GBPUSD monthly time frame

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.

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GBPUSD key levels on the daily time frame
GBPUSD daily time frame

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Justin Bennett says

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shaun says

There is also a trendline moving up on the daily?

the bottom candle on the picture, the candle at the second highest support and at the 1.2670 support line??

you think this is could be tested?

Nwosu Onyeka Nelson says

Hi Justin, would you consider the monthly close of GBPUSD for September as “ENGULFING” candle same with EURUSD?

Nwosu Onyeka Nelson says

Hi Justin, would you consider the monthly close of GBPUSD for September as “ BEARISH ENGULFING” candle same with EURUSD?

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