Hi Traders! GBPUSD forecast follow up and update is here. On March 3rd I shared this “GBPUSD Forecast And Technical Analysis” post in my blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!
My Idea
On the H4 chart, 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 evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections 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 here as well, we may consider this as yet another evidence of bearish pressure. So everything looks good here for the bears and until this strong resistance zone (marked in blue) shown in the image below holds my view remains bearish here and I expect the price to continue lower further.
On the H4 chart, my view was bearish and I was expecting the price to move lower further until the strong resistance zone holds. After the bearish trend pattern, we had a pullback and the price was holding below the strong resistance zone. The price then moved lower further as I expected it to and delivered around 240 pips move until it was blocked by a bullish divergence.
(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)
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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
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