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 – Potential Double Wave, Key Resistance Zones, No Opposite Signs, ADX Indicator
On the daily chart, the price which is moving higher has created a first wave to the upside and currently it looks like the price is creating a potential second wave to the upside. While measuring the first wave using the Fibonacci expansion tool we have two key resistance zones that has formed based on the 61.8%(1.37172) Fibonacci expansion level and the 100%(1.39396) Fibonacci expansion level. Price still has room higher towards these key resistance zones and also, currently there are no signs opposing this short term bullish view. 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 evidence of bullish pressure. We may now move down to lower timeframe and see if we can find evidences supporting this short term bullish view.
GBPUSD H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, Range
On the H4 chart, 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. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. After the first move to the upside currently it looks like a flat correction is happening in the form of a range. 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. If we get a valid breakout above the top of the range we may then consider it as a validation for this short term bullish view and may expect the price to move higher further towards the key resistance zones.
Technical Analysis & Forecast Summary
GBPUSD D1(Daily) Chart Analysis
- Potential Double Wave, Key Resistance Zones, No Opposite Signs, ADX Indicator
GBPUSD H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, Range
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 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.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
