Hi Traders! GBPUSD short term forecast and technical analysis post 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 Home Trader Club Spoiler alert – free memberships are available!
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GBPUSD H4(4 Hours) Chart Analysis – Support Breakout, Most Recent Uptrend Line Breakout, Lower Lows
On the H4 chart, 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 evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. In addition to this, the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Also, we could see that the price which is moving lower has created lower lows based on the MACD indicator, which is a sign of gaining momentum towards the bearish side. So everything looks good here for the bears and we may now move down to lower timeframe and look for evidence supporting this short term bearish view.
GBPUSD H1(1 Hour) Chart Analysis – Strong Bearish Momentum, Two Key Resistance Zones
On the H1 chart, we could see that currently we have a strong bearish momentum here as well. Also while measuring this strong bearish move we have two key resistance zones that has formed. The first key resistance zone is formed based on the 23.6%(1.28230) – 38.2%(1.28964) Fibonacci retracement levels of the strong bearish move. The second key resistance zone is formed based on the 50%(1.29557) – 61.8%(1.30151) Fibonacci retracement levels of the strong bearish move. Until both these key resistance zones shown in the image below (marked in red) holds my short term view remains bearish here and I expect the price to move lower further after pullbacks.
Technical Analysis & Forecast Summary
GBPUSD H4(4 Hours) Chart Analysis
- Support Breakout, Most Recent Uptrend Line Breakout, Lower Lows
GBPUSD H1(1 Hour) Chart Analysis
- Strong Bearish Momentum, Two Key Resistance Zones
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.
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