GBPUSD Forecast Update And Follow Up

Hi Traders! GBPUSD short term forecast follow up and update is here. On September 16th I shared this “GBPUSD Forecast” in Trading View. 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:

 

GBPUSD H4(4 Hours) Chart Current Scenario

So based on the technical analysis shown above I mentioned that my view remains bearish until the strong resistance zone holds. The price which was moving higher, reached this strong resistance zone, respected it. In addition to this we also had a bearish hidden divergence that had completed itself between the first high that has formed at 1st September 2020 and the second high that has formed at 16th September 2020 based on the MACD indicator. We may consider these as facts provided by the market supporting the bearish view. The price then moved lower further delivering 320+ pips move so far.

You can see this move clearly on the screenshot below:

Currently, on the H4 chart, we have a bullish divergence that has formed, this is something that we need to pay attention to. So if you are still involved in the sells then this is a good place to consider managing your trade and secure your profits (cash out or partial cash out or trailing protections or partial hedge, etc.. depending on the strategy that you work with).

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This is a good example of how the market provided us with hint supporting the bearish view. As you can see in the example above the market provided us with a hint in the form of bearish hidden divergence which acted as evidence of bearish pressure and also the strong resistance zone was holding, also there were no contradictory signs. Then as you can see in the screenshot above how the price moved lower after that. This is why I always say that as traders we should follow the facts and hints that the market provides us and take the right action.

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To your success,

Vladimir Ribakov
Certified Financial Technician