Hi Traders! GBPAUD forecast and technical analysis post 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! here). Now, let’s start our analysis from the highest timeframe which will be the daily chart here.
GBPAUD D1(Daily) Chart Analysis – Bullish Convergence, Parabolic Sar, ADX Indicator
On the daily chart, the price which was moving lower reached a strong support zone respected it, and is bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 1.74250 and the second low that has formed at 1.74148 based on the MACD indicator. Then the price moved higher and broke above the high at 1.79267 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently, it looks like the correction that we were looking for is happening. Also based on the Parabolic Sar the dots are below the price, which we may consider as evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
GBPAUD H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Stochastic Oscillator, Key Support Zone
On the H4 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider this as yet another evidence of bullish pressure. Until the key support zone formed by the 50%(1.77161) – 61.8%(1.76456) Fibonacci retracement zones of the bullish trend pattern holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Bullish Convergence, Parabolic Sar, ADX Indicator
GBPAUD H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Stochastic Oscillator, Key Support Zone
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 buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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To your success,
Vladimir Ribakov
Certified Financial Technician
