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 and useful tips and hacks about the MT4 platform could be found here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. Lets start our analysis now from the daily chart.
GBPUSD D1(Daily) Chart Analysis – Bearish Channel
On the daily chart the price is moving inside a bearish channel, this channel is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting these two zones so far has currently reached the middle of this channel after bouncing from the bottom of it. The price still has room higher towards the top of this channel. We may now move down to one timeframe lower and look for evidences supporting this bullish view.
GBPUSD H4 (4 Hours) Chart Analysis – Bullish Hidden Divergence
On the H4 chart we have a bullish hidden divergence that has formed between the first low at 1.28723 and the second low at 1.29701 based on the MACD histogram indicator which we may consider as an evidence of bullish pressure. So the bottom line here is that the H4 chart has evidence supporting the bullish view.
GBPUSD H1 (1 Hour) Chart Analysis – Bullish Trend Pattern, Important Support Zone, Bullish Divergence
On the H1 chart the price which is moving higher has created a bullish trend pattern, generally after a bullish trend pattern we may expect a correction to happen. The correction that we were looking for happened in the form of double wave down with the price reaching an important support zone formed by the 38.2% (1.29934) – 50% (1.29702) fibonacci retracement zone. In addition to this we also have a bullish divergence that has formed between the first low at 1.30006 and the second low at 1.29701 based on the MACD indicator which we may consider as an evidence of bullish pressure. Until this important support zone holds my short term view remains bullish here.
Technical Analysis & Forecast Summary
GBPUSD D1(Daily) Chart Analysis
- Bearish Channel
GBPUSD H4 (4 Hours) Chart Analysis
- Bullish Hidden Divergence
GBPUSD H1 (1 Hour) Chart Analysis
- Bullish Trend Pattern, Important Support Zone, Bullish Divergence
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