Hi Traders! GBPAUD technical analysis and short term 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! Let’s start our analysis from the highest timeframe which will be the H4 chart here.
GBPAUD H4(4 Hours) Chart Analysis – Strong Support Zone, Bullish Hidden Divergence, Stochastic Oscillator
On the H4 chart, we have a strong resistance that has formed and the price which was moving higher has broken above this strong resistance zone. Currently this strong resistance zone is acting as a strong support zone for us. The price which is moving lower has currently reached this support zone. We also have a bullish hidden divergence that has formed between the first low that has formed at 1.87596 and the second low that has formed at 1.89284 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as another evidence of bullish pressure. We may now move down to one timeframe lower and look for evidences supporting this bullish view.
GBPAUD H1(1 Hour) Chart Analysis – Bullish Divergence, Key Support Zones, ADX Indicator
On the H1 chart, the price which is moving lower has created a double wave down. We also have a bullish divergence that has formed between the first low that has formed at 1.89851 and the second low that has formed at 1.89284 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, this bullish divergence supports the H4 bullish hidden divergence which we may consider as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here 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. Also, we have two key support zones that has formed, the first key support zone is formed by the 61.8%(1.89628) Fibonacci expansion level of the first wave. The second key support zone is formed by the 100%(1.88758) Fibonacci expansion level of the first wave. Until both these key support zones hold my short term view remains bullish here. If we get a valid breakout above the downtrend line shown in the image below we may then consider it as a validation for this bullish view and may expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPAUD H4(4 Hours) Chart Analysis
- Strong Support Zone, Bullish Hidden Divergence, Stochastic Oscillator
GBPAUD H1(1 Hour) Chart Analysis
- Bullish Divergence, Key Support Zones, ADX Indicator
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 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!
Arvinth Akash
Traders Academy Club Team.
