Hi Traders! GBPAUD technical analysis and forecast 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!
GBPAUD D1(Daily) Chart Analysis – Strong Resistance Zone, Bearish Divergence, Volumes Indicator
On the daily chart, the price which was moving higher reached a strong resistance zone, respected it, and is currently moving lower. We also have a bearish divergence that has formed between the first high that has formed on 2nd February 2021 and the second high that has formed on 1st April 2021 based on the MACD indicator, we may consider this as evidence of bearish pressure. Also based on the Volumes indicator we could see that the volumes are dropping, we may consider this as another evidences of bearish pressure. So everything looks good here for the bears and also 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 H1(1 Hour) Chart Analysis – Bearish Trend Pattern, ADX Indicator, Strong Resistance Zone
On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. In addition to this, the ADX indicator gave a bearish signal here 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. Also, 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 another evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view here is bearish and I expect the price to move lower further after pullbacks.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Strong Resistance Zone, Bearish Divergence, Volumes Indicator
GBPAUD H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, ADX Indicator, Strong Resistance 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 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!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
