Hi Traders! GBPUSD short term forecast update and follow up is here. On June 23rd I shared this “Technical Analysis – GBPUSD Short Term Forecast” post in our 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 H1 chart, the price has created multiple false breaks and bearish divergences between the first high that has formed at 1.39362 and the second high that has formed at 1.39869 which we may consider as evidences of bearish pressure. Also, while measuring the first wave of this correction using the Fibonacci expansion tool, we could see that the 100%(1.40138) Fibonacci expansion level of this first wave coincides with the first resistance zone on the H4 chart which makes this a key resistance zone for us. Also, we could see that the 161.8%(1.41089) Fibonacci expansion level of this first wave and the downtrend line coincides with the second resistance zone on the H4 chart which makes this area a second key resistance zone for us. Until both these key resistance zones hold my view remains bearish here and I expect the price to move lower further.
On the H1 chart my view was bearish and I was expecting the price to move lower further until the key resistance zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving higher reached the first key resistance zone, respected it and moved lower from this zone. The price then moved lower further as I expected it to and delivered 180+ pips move so far.
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