Hi Traders! GBPUSD 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 Traders Academy Club Spoiler alert – free memberships are available!
GBPUSD D1(Daily) Chart Analysis – Range, Bullish Convergence, ADX Indicator
On the daily chart, after the strong bullish move, the price is currently moving inside a range which started on 24th February 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is respecting this range so far has reached the bottom of this range, respected it and bounced higher from this zone. Currently the price has reached the middle of this range, we also have a bullish divergence that has formed between the first low that has formed at 1.37861 and the second low that has formed at 1.35716 based on the MACD indicator. Then the price moved higher and broke above the high at 1.39098 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. 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 another evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
GBPUSD H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Two Key Support Zones
On the H1 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening in the form of double wave to the downside. We also have two key support zones that has formed, the first key support zone is formed based on the 61.8% (1.38899), 100%(1.38483) Fibonacci expansion levels of the first wave of this correction and the 23.8%(1.38856) Fibonacci retracement level of the bullish trend pattern. The second key support zone is formed by the 38.2%(1.38254) – 50%(1.37768) Fibonacci retracement levels of the bullish trend pattern and the 161.8%(1.37810) Fibonacci expansion level of the first wave of this correction. Until both these key support zones hold my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPUSD D1(Daily) Chart Analysis
- Range, Bullish Convergence, ADX Indicator
GBPUSD H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Two Key Support Zones
Trading Tips
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Arvinth Akash
Traders Academy Club Team.
