Hi Traders! GBPAUD short term forecast follow up and update is here. On November 23rd I shared this “GBPAUD Technical Analysis And Short Term Forecast” post in our blog. 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
On the H1 chart, we could see that the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. Currently, it looks like a flat correction is happening and while measuring the last wave using the Fibonacci expansion tool we have two key support zones that has formed. The first zone is formed by the 61.8%(1.84810), 100%(1.84339) Fibonacci expansion levels, bottom of the range and the 38.2%(1.84500) Fibonacci retracement level of the bullish trend pattern. The second key support zone is formed by the 161.8%(1.83562) Fibonacci expansion level of the wave and the 50%(1.84041) – 61.8%(1.83578) Fibonacci retracement levels. The price is currently nearing the first key support zone and also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as evidence of bullish pressure. Until both the key support zones hold my short term view remains bullish here and I expect the price to move higher further.
GBPAUD H1(1 Hour) Chart Current Scenario
In this pair, on the H1 chart, based on the above-mentioned analysis my short term view was bullish and I was expecting the price to move higher further until the two key support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first key support zone, respected it and bounced higher from this zone. The price then moved higher and broke above the top of the range which we may consider as an evidence provided by the market favoring the bulls and also there were no signs opposing this bullish view. The price then moved higher further as I expected it to and provided a fantastic move to the upside delivering 430+ pips move.
So, traders, this is why I wanted to show this example to help you understand how important it is to follow the facts. The facts were supporting the bullish view here and there were no signs against it. When the facts do happen as we expected you can see how the price perfectly moved as per the plan. Because these are the kind of hints the market provides us at majority of the times and it’s our obligation as traders to be able to listen to these things that the market tells us and we should try to make the right actions.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
