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
GBPAUD D1(Daily) Chart Analysis – Range Breakout, Higher Highs, Correction
On the daily chart the price was moving inside a range, this range is formed by the highs and lows reaching parallel resistance and support zones. The price which was respecting this range so far has broken above the top of it and is currently holding above it. In addition to this, we could see that the price has created higher highs based on the moving averages of the MACD indicator. Currently it looks like a correction is happening and once this correction completes itself, we may then expect the price to continue higher further. Until this correction completes itself my short term view remains bearish here. So basically my long view is bullish and my short term view is bearish here. We may now move down to lower timeframes and see if we can find evidences supporting this short term bearish view.
GBPAUD H4(4 Hours) Chart Analysis – Two Key Support Zones
Looking at the H4 chart, we could that the price has created the first leg of this correction and currently it looks like the second leg is developing. While measuring this first leg using the Fibonacci expansion tool, we have two key support zones that has formed based on the 61.8%(1.87851) Fibonacci expansion level and the 100%(1.87009) Fibonacci expansion level. Generally, we may expect the correction to happen in the form of double wave down or in the form of a range. If this correction happens in the form of a range then there is a good chance for the price to move lower and reach the 61.8%(1.87851) Fibonacci expansion level.
Alternatively, if it happens in the form of double wave down then there is a good chance for the price to move lower and reach the 100%(1.87009) Fibonacci expansion level. In both ways my short term view remains bearish here.
GBPAUD H1(1 Hour) Chart Analysis – Strong Resistance Zone, Lower Lows
On the H1 chart, we have a strong resistance zone that has formed and the price which was moving higher reached this zone, respected it and is bouncing lower from this zone. Then the price which was moving lower broke below the last low at 1.88402 thus creating lower lows based on the MACD indicator, which we may consider as evidence of bearish pressure. Currently it looks like the price is retesting this breakout. So everything looks good here for the bears and until the strong resistance zone holds my short term view remains bearish here and I expect the price to move lower towards the 61.8% or the 100% Fibonacci expansion level. We may then look for possible buy opportunities with bullish evidences.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Range Breakout, Higher Highs, Correction
GBPAUD H4(4 Hours) Chart Analysis
- Two Key Support Zones
GBPAUD H1(1 Hour) Chart Analysis
- Strong Resistance Zone, Lower Lows
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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To your success,
Vladimir Ribakov
Certified Financial Technician
