Technical Analysis – GBPAUD Forecast

1
174
Technical Analysis - GBPAUD Forecast

Hi Traders! GBPAUD forecast and technical analysis is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. 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! This analysis will be based on price action trading (if you want to learn about price action trading, you can watch this video here).

GBPAUD D1(Daily) Chart Analysis – Important Support Zone, Parabolic Sar, ADX Indicator

On the daily chart, the price which is moving lower has broken below the first support zone formed by the 161.8% (1.83578) fibonacci expansion level of the first wave and the 61.8% fibonacci expansion level of the second wave, retested it, and is currently moving lower. The price still has room lower towards the next important support zone formed by the 261.8% (1.69768) fibonacci expansion level of the first wave and the 161.8%(1.69101) fibonacci expansion level of the second wave. Also based on the Parabolic Sar the dots are above the price which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bearish pressure. We may now move down to lower timeframes and see if we can find evidences supporting this bearish view.

Technical Analysis - GBPAUD Forecast

 

 

GBPAUD H4(4 Hours) Chart Analysis – Uptrend Line Breakout, Stochastic Oscillator, ADX Indicator

Looking at the H4 chart we could see that the price which is moving lower has broken below the most recent uptrend line which we may consider as an evidence of bearish pressure. In addition to this, we could see that the Stochastic Oscillator has also reached its extreme. Also, the ADX indicator gave bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider these as other evidences of bearish pressure. So the bottom line here is that the H4 chart has evidences supporting the bearish view.

Technical Analysis - GBPAUD Forecast

 

 

GBPAUD H1(1 Hour) Chart Analysis – Bearish Trend Pattern, Bearish Hidden Divergence, ADX Indicator

On the H1 chart, the price which is moving lower had created a bearish trend pattern that has completed itself. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for is happening. We also have a bearish hidden divergence that has formed between the first high that has formed on 20th July 2020 and the second high that has formed on 22nd July 2020 based on the histogram of the MACD indicator which we may consider as evidence of bearish pressure followed by a potential bearish divergence that is developing at the moment. In addition to this, the ADX indicator gave bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. So based on all this, my view remains bearish here and once this correction completes itself we may then expect the price to continue lower further.

Technical Analysis - GBPAUD Forecast

 

Technical Analysis & Forecast Summary

GBPAUD D1(Daily) Chart Analysis

  • Important Support Zone, Parabolic Sar, ADX Indicator

GBPAUD H4(4 Hours) Chary Analysis 

  • Uptrend Line Breakout, Stochastic Oscillator, ADX Indicator

GBPAUD H1(1 Hour) Chart Analysis 

  • Bearish Trend Pattern, Bearish Hidden Divergence, ADX Indicator

 

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 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.

Also, don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?

I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.

Join Traders Academy Club Now

Also, you can get one of my strategies free of charge. You will find all the details here

 

If you have any further questions, don’t hesitate to drop a comment below!

 

Happy Trading!

Yordan Kuzmanov
Chief Trader at the Traders Academy Club

Click To Join Our Community Telegram Group

Subscribe
Notify of
guest
1 Comment
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
Imdad Ullah Khalid
Imdad Ullah Khalid
12 days ago

i disagree sir, it has to go 1.9250 before 1.69(your level)

0