Hi Traders! GBPAUD technical analysis and short term forecast is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available!
GBPAUD H4(4 Hours) Chart Analysis – Strong Bearish Momentum, Heikin Ashi Candles, Support Zone Breakout
On the H4 chart, we have a strong bearish momentum and based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward-moving market conditions so it basically reflects a bearish environment. Also, we had 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 yet another evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidences supporting this short term bearish view.
GBPAUD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Range
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. Currently it looks like a flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. A valid breakout below the bottom of the range would be the validation for this bearish view. Alternatively if we get a valid breakout above the top of this range then this bearish view will be invalidated.
Technical Analysis & Forecast Summary
GBPAUD H4(4 Hours) Chart Analysis
- Strong Bearish Momentum, Heikin Ashi Candles, Support Zone Breakout
GBPAUD H1(1 Hour) Chart Analysis
- Bearish Trend Pattern, Range
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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Arvinth Akash
Home Trader Club Team.
HI, have long since Monday and the pair isn’t moving 😕