Hi Traders! GBPAUD technical analysis and forecast 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 – Key Support Zone, False Breaks, Bullish Divergences, ADX Indicator
On the daily chart, the price which is moving lower has reached a key support zone formed by the 100%(1.76562) Fibonacci expansion level of the first wave and the 61.8%(1.72725) Fibonacci expansion level of the second wave we have. The price is currently holding in this key support zone and also we have multiple false breaks with bullish divergences between the first low that has formed at 1.74924 and the second low that has formed at 1.74148 based on the MACD indicator. We may consider these as evidences 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 H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Bullish Divergence, Stochastic Oscillator, Strong Support Zone
On the H1 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. We also have a bullish divergence between the first low that has formed at 1.75935 and the second low that has formed at 1.75584 based on the MACD indicator. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as evidences of bullish pressure and currently, there are no signs opposing this bullish view. In addition to this, we had a strong resistance zone that had formed and the price which is moving higher has broken above this strong resistance zone and is holding above it. Currently, this strong resistance zone is acting as a strong support zone for us. Until this strong support zone holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Key Support Zone, False Breaks, Bullish Divergences, ADX Indicator
GBPAUD H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Bullish Divergence, Stochastic Oscillator, Strong 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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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
