GBPCAD Short Term Forecast And Technical Analysis

Hi Traders! GBPCAD short-term forecast and technical analysis is here. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting, useful tips and hacks about the MT4 platform could be found here. As we do in every technical analysis post we are going to perform the multi-timeframe technical analysis on this pair in order to find possible trading opportunities. 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! Let’s start our analysis now from the highest timeframe which will be the H4 chart here.

GBPCAD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Bearish Trend Pattern, Lower Lows, ADX Indicator

On the H4 chart, 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. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, the price which is moving lower has created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. 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 a value over 25 which we may consider as yet another evidence of bearish pressure. Also, currently there are no signs opposing this short term bearish view. So everything looks good here for the bears and we may now move down to one timeframe lower and look for evidences supporting this short term bearish view.

 

 

 

GBPCAD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Stochastic Oscillator, Strong Resistance Zone

On the H1 chart, currently, we have a strong bearish momentum and the price which is moving lower has broken below a strong support zone and is holding below it, we may consider this as evidence of bearish pressure. After the breakout, this strong support zone is acting as a strong resistance zone for us. Also, we could see that the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows we may consider this as another evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect correction and then further continuation lower. Currently, it looks like a correction is happening. In addition to this based on the Stochastic Oscillator, we could see that the price has reached its extreme, we may consider this as yet another evidence of bearish pressure. So everything looks good here for the bears and until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to continue lower further after pullbacks.

 

 

Technical Analysis & Forecast Summary

GBPCAD H4(4 Hours) Chart Analysis 

• Heikin Ashi Candles, Bearish Trend Pattern, Lower Lows, ADX Indicator

GBPCAD H1(1 Hour) Chart Analysis 

• Bearish Trend Pattern, Stochastic Oscillator, Strong Resistance Zone

 

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