Hi Traders! GBPUSD short term forecast and technical analysis is 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. 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. This pair definitely looks interesting at the moment so as usual we will start our analysis from the highest timeframe which would be the H4 chart here.
GBPUSD H4(4 Hours) Chart Analysis – Range, Bearish Hidden Divergence
On the H4 chart the price is moving inside a range which started on 18th March 2020, this range is formed by the highs and lows reaching parallel resistance and support zones. The price which is respecting this range so far is currently nearing the top of it, if we didn’t get a valid breakout here we may then expect the price to respect this resistance level and move lower again. In addition to this we also have a bearish hidden divergence that has formed between the first high that has formed on 9th March 2020 and the second high that has formed on 20th March 2020 which we may consider as an evidence of bearish pressure. We may now move down to one timeframe lower and see if we have evidences supporting this short term bearish view.
GBPUSD H1 (1 Hour) Chart Analysis – Sell Zone, Stochastic Oscillator
On the H1 chart we have a good sell zone that has formed based on the 100% fibonacci expansion level of the first wave we have at 1.19706 and the top of the H4 range. Also based on the Stochastic Oscillator we can see that the price has already reached its extreme which we may consider as an evidence of bearish pressure. So the bottom line here is that everything looks good here for the bears as we have evidences supporting the bearish view. Until the sell zone shown in the screenshot below holds my short term view remains bearish here.
Technical Analysis & Forecast Summary
GBPUSD H4(4 Hours) Chart Analysis
- Range, Bearish Hidden Divergence
GBPUSD H1 (1 Hour) Chart Analysis
- Sell Zone, Stochastic Oscillator
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.
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