Hi Traders! GBPJPY Technical Analysis And Short Term Forecast 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. 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!
On the H4 chart, we had a strong resistance zone and the price which is moving higher has currently broken above this zone and is holding above it, we may consider this as evidence of bullish pressure. After the breakout, this strong resistance zone is acting as a strong support zone for us. Also, the price which is moving higher has broken the last high at 162.488 and has created higher highs based on the MACD indicator which is a sign of gaining momentum towards the bullish side. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. 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. So everything looks good here for the bulls. Until the strong support zone (marked in green) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks.
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.
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Arvinth Akash
Traders Academy Club Team
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