Hi Traders! GBPAUD short term forecast follow up and update is here. On December 2nd I shared this “GBPAUD Short Term Sell Idea Inside A Range” post in trading view. In this post, let’s do a recap of this setup and see how it has developed now. If you would like to learn more about the way we trade and the technical analysis we use then check out the Traders Academy Club. Spoiler alert – free memberships are available!
My Idea
GBPAUD H1(1 Hour) Chart Current Scenario
On the H1 chart the price action followed my analysis exactly as I expected it to. After the breakout of the most recent uptrend line and the bearish convergence the correction that I was looking for happened and then the price moved lower further delivering around 110+ pips move.
We had various facts supporting the bearish view on the M15 chart, we had a flat correction in the form of a range and also we had a bearish hidden divergence that had formed between the first high that has formed at 1.82119 and the second high that has formed at 1.81185 based on the MACD indicator. The price then moved lower and broke below the bottom of this range. We may consider these as hints provided by the market supporting the bearish view. The price then moved lower further and provided an amazing move to the downside until it was blocked by a bullish divergence at the bottom of this range.
As traders we always have two choices, the first one is to fall in love with our analysis and try to convince the market and expect the price to move in the direction as per our wish. The second one is to follow the facts that the market provides us and make the right actions according to that. As you know the first option won’t help us and as you can see in the example above what happened when we followed the facts that the market hinted us and took the right action according to that.
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To your success,
Vladimir Ribakov
Certified Financial Technician
