Hi Traders! Today I share with you my GBPUSD technical analysis and forecast post, 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! Let’s start our analysis now from the highest timeframe which will be the daily chart here.
GBPUSD D1(Daily) Chart Analysis – Bullish Convergence, Parabolic Sar, CCI Indicator, Downtrend Line Breakout
On the daily chart we have a bullish divergence that has formed between the first low that has formed at 1.36736 and the second low that has formed at 1.36686 based on the MACD indicator. Then the price moved higher and broke above the high at 1.39181 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. We have this bullish convergence on the CCI indicator as well and in addition to this, based on the Parabolic Sar we could see that the dots are below the price, we may consider these as evidences of bullish pressure. Also the price which is moving higher has broken above the most recent downtrend line, we may consider this as yet 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, Bullish Hidden Divergence, CCI Indicator, Two Strong 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 and the price which is moving lower has reached a strong support zone. We also have a bullish hidden divergence that has formed between the first low that has formed at 1.38094 and the second low that has formed at 1.39259 based on the MACD indicator followed by a continuing bullish divergence. Also we have a downtrend line breakout based on the CCI indicator. We may consider these as evidences of bullish pressure. There are two possible scenarios from here, the price might move higher from the current zone or alternatively if it moves lower then the next area to look for bullish setups with bullish evidences would be the second strong support zone.
Technical Analysis & Forecast Summary
GBPUSD D1(Daily) Chart Analysis
- Bullish Convergence, Parabolic Sar, CCI Indicator, Downtrend Line Breakout
GBPUSD H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Bullish Hidden Divergence, CCI Indicator, Two Strong Support 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 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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To your success,
Vladimir Ribakov
Certified Financial Technician
