Hi Traders! Today I share with you my GBPUSD forecast and technical analysis, 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 Trend Pattern, Key Support Zone, Bullish Divergence, Stochastic Oscillator
On the daily 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 the key support zone formed by the 38.2%(1.36386) – 50%(1.34522) Fibonacci retracement zones of the bullish trend pattern. In addition to this, we have a bullish divergence that has formed between the first low that has formed on 25th March 2021 and the second low that has formed on 12th April 2021 based on the MACD indicator. Also based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as other evidences 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 Convergence, Strong Support Zone
On the H1 chart we have a bullish divergence that has formed between the first low that has formed at 1.36694 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 1.37438 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. Currently, it looks like the correction that we are looking for is happening. Until the strong support zone shown in the image below holds my view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPUSD D1(Daily) Chart Analysis
- Bullish Trend Pattern, Key Support Zone, Bullish Divergence, Stochastic Oscillator
GBPUSD H1(1 Hour) Chart Analysis
- Bullish Convergence, Strong Support Zone
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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Happy Trading!
Yordan Kuzmanov
Chief Trader at the Traders Academy Club
