Hi Traders! Today I am sharing with you the GBPAUD short term forecast and technical analysis post. 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!. Now, let’s start our analysis from the highest timeframe which will be the H4 chart here.
GBPAUD H4(4 Hours) Chart Analysis – Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
Looking at the H4 chart, we could see that the price which was moving lower has created lower lows based on the MACD indicator which is a sign of gaining momentum towards the bearish side. Currently, it looks like a correction is happening and the price which is moving higher has reached a strong resistance zone, respected it and is currently bouncing lower from this zone. In addition to this, we could see that the price has created a bearish hidden divergence between the first high that has formed at 1.71049 and the second current high that has formed at 1.68875 based on the MACD indicator, which we may consider as evidence of bearish pressure. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
GBPAUD H1(1 Hour) Chart Analysis – Bearish Divergence, Uptrend Line Breakout, Parabolic Sar
On the H1 chart, we have a bearish divergence that has formed supporting the H4 bearish hidden divergence, between the first high that has formed at 1.67794 and the second high that has formed at 1.68875 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. In addition to this, based on the Parabolic Sar we could see that the dot is above the price which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
Technical Analysis & Forecast Summary
GBPAUD H4(4 Hours) Chart Analysis
- Lower Lows, Strong Resistance Zone, Bearish Hidden Divergence
GBPAUD H1(1 Hour) Chart Analysis
- Bearish Divergence, Uptrend Line Breakout, Parabolic Sar
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 short term 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
