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, Downtrend Line Breakout
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. In addition to this we also have a breakout of the most recent downtrend line which we may consider as 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, Strong Support Zone, Downtrend Line Breakout
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. After the bullish trend pattern, we had a correction in the form of double wave down with the price reaching a strong support zone, respected it, and is currently bouncing higher from this zone. We also have a bullish divergence that has formed between the first low that has formed at 1.78127 and the second low that has formed at 1.77789 based on the MACD indicator which we may consider as evidence of bullish pressure. In addition to this, the price which is moving higher has broken above the most recent downtrend line, we may consider this as another evidence of bullish pressure. So everything looks good here for the bulls and until this strong support zone shown in the image below holds I expect the price to continue higher further.
Technical Analysis & Forecast Summary
GBPAUD D1(Daily) Chart Analysis
- Bullish Convergence, Downtrend Line Breakout
GBPAUD H4(4 Hours) Chart Analysis
- Bullish Trend Pattern, Strong Support Zone, Downtrend Line Breakout
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.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join us in our live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
To your success,
Certified Financial Technician