Hi Traders! In today’s technical analysis post I will sharing with you the GBPAUD short term sell idea. We will be using the MetaTrader4 platform (MT4) for our analysis. Some very interesting and useful tips and hacks about the MT4 platform could be found here. 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!
GBPAUD D1 (Daily) Chart Analysis – Fibonacci Retracement, Bearish Divergence, Bearish Hidden Divergence
On the daily chart we had a special or triple cycle to the upside which has completed itself. Currently it looks like a retrace is happening in the form of two waves down, price still has room lower towards the 38.2% (1.87752) – 50% (1.85468) fibonacci retracement zone of the cycle. In addition to this we had a bearish divergence between the first high at 16th October 2019 and the second high at 16th December 2019 based on the MACD indicator followed by the price creating lower lows. Then we had a pullback with the price creating the bearish hidden divergence between the first high at 16th December 2019 and the second high at 8th January 2020 based on the MACD indicator, we may consider these as evidences of bearish pressure. We may now look for more evidences of bearish pressure on lower timeframes in order to join the bears.
GBPAUD H1 (1 Hour) Chart Analysis – Bearish Hidden Divergence, Bearish Divergence, Decreasing Volumes
On the H1 chart we had a bearish hidden divergence between the first high at 1.90663 and the second high at 1.88627 which is followed by a continuing bearish divergence between the first high at 1.88627 and the second high at 1.89071 based on the MACD indicator we may consider these as evidences of bearish pressure. Also we have another important bearish evidence which we have here is in the Volumes indicator (the Red and Green bars found at the bottom, below the price) in which we are looking at steady decline. So everything looks good here for the bears and we have evidences that supports our bearish view based on the higher timeframe. We may now start looking for short term sells with more bearish evidences.
Technical Analysis & Forecast Summary
Lets recap and summarize the analysis we had so far:
GBPAUD D1 (Daily) Chart Analysis:
- Fibonacci Retracement, Bearish Divergence, Bearish Hidden Divergence
GBPAUD H1 (1 Hour) Chart Analysis:
- Bearish Hidden Divergence, Bearish Divergence, Decreasing Volumes
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.
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 trading rooms, on daily basis, and improve your trading with us.
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!
Chief Trader at the Traders Academy Club