Hi Traders! GBPAUD short term forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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! Let’s start our analysis from the highest timeframe which will be the daily chart here.
You can find the video explanation of this idea here
- 1 GBPAUD D1(Daily) Chart Analysis – Range, Parabolic Sar, Volumes Indicator
- 2 GBPAUD H4(4 Hours) Chart Analysis – Bearish Divergence, Parabolic Sar, ADX Indicator
- 3 GBPAUD H1(1 Hour) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, Downtrend Line
- 4 Technical Analysis & Forecast Summary
- 5 Trading Tips
GBPAUD D1(Daily) Chart Analysis – Range, Parabolic Sar, Volumes Indicator
On the daily chart the price is moving inside a range, this range is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting this range so far has currently reached the top of it and is bouncing lower. Also based on the Parabolic Sar we could see that the dots are above the price which we may consider as evidence of bearish pressure. In addition to this, based on the Volumes indicator we could see that the volumes are dropping which we may consider as another evidence of bearish pressure. Also currently there are no signs opposing this bearish view. We may now move down to lower timeframe and look for evidences supporting this bearish view.
GBPAUD H4(4 Hours) Chart Analysis – Bearish Divergence, Parabolic Sar, ADX Indicator
On the H4 chart, the price has created a bearish divergence between the first high that has formed on 13th May 2021 and the second high that has formed on 28th May 2021 which we may consider as evidence of bearish pressure. Also based on the Parabolic Sar we could see that the dots are above the price here as well which we may consider as another evidence of bearish pressure. n addition to this, the ADX indicator gave a bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. So the bottom line here is that the H4 chart has evidences supporting the bearish view.
GBPAUD H1(1 Hour) Chart Analysis – Strong Resistance Zone, Bearish Hidden Divergence, Downtrend Line
On the H1 chart we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it, we may consider this as evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. We also have a bearish hidden divergence that has formed between the first high that has formed at 1.83888 and the second high that has formed at 1.83215 based on the MACD indicator which we may consider as another evidence of bearish pressure. Also we have a downtrend line that has formed and the price is holding below it, until this dynamic resistance holds my view remains bearish here and I expect the price to move lower further in the short term. If we get a valid breakout above this downtrend line then this short term bearish view will be invalidated.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Range, Parabolic Sar, Volumes Indicator
GBPAUD H4(4 Hours) Chart Analysis
- Bearish Divergence, Parabolic Sar, ADX Indicator
GBPAUD H1(1 Hour) Chart Analysis
- Strong Resistance Zone, Bearish Hidden Divergence, Downtrend Line
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
