Technical Analysis – GBPAUD Short Term Forecast

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GBPAUD Short Term Forecast Follow Up And Update

Hi Traders! Today I am sharing with you the GBPAUD short term forecast and technical analysis post. In this pair based on the multi-timeframe analysis method, we are going to look for the evidences on three timeframes that are on the current trading timeframe and two timeframes higher, when we get evidences that support our view on these three timeframes this makes the setup very 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! Now, let’s start our analysis from the highest timeframe which will be the daily chart here.

GBPAUD D1(Daily) Chart Analysis – Key Support Zone, Bullish Divergence

On the daily chart, after the strong bullish move currently it looks like a correction has happened in the form of double wave to the downside. We have a key support zone that has formed based on the 161.8%(1.80793) Fibonacci expansion level of the first wave and the 61.8%(1.79845) Fibonacci retracement level of the big bullish move. The price which was moving lower reached this zone, respected it and is currently bouncing higher from this zone. In addition to this, we also have a bullish divergence that has formed between the first low that has formed at 1.85300 and the second low that has formed at 1.81262 based on the MACD indicator, which we may consider as evidence of bullish pressure. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this bullish view.
Technical Analysis – GBPAUD Short Term Forecast

 

GBPAUD H4(4 Hours) Chart Analysis – Resistance Breakout, Higher Highs, ADX Indicator

Looking at the H4 chart, we could see that the price which is moving higher has broken above a strong resistance zone and is holding above it, which we may consider as evidence of bullish pressure. Also, we could see that the price has created higher highs based on the MACD indicator which we may consider as another evidence of bullish pressure and also currently there are no signs opposing this short term bullish view. Also, the ADX indicator gave a bullish signal at the cross of +DI (green line) versus -DI (red line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidences of bullish pressure. We may now move down to one more timeframe lower and look for evidences supporting this short term bullish view.
Technical Analysis – GBPAUD Short Term Forecast

 

GBPAUD H1(1 Hour) Chart Analysis – Bullish Trend Pattern, ADX Indicator, Two Key Support Zones

On the H1 chart, we could see that the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows which we may consider as evidence of bullish pressure. Also, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. We may consider this as another evidence of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here as well at the cross of +DI (green line) versus -DI (red line), and the main signal line (silver line) reads value over 25, we may consider this as yet another evidences of bullish pressure. While measuring the bullish trend pattern using the Fibonacci retracement tool, we have two key support zones that has formed. The first key support zone is formed by the 23.6%(1.84138) – 38.2%(1.83748) Fibonacci retracement levels and the second key support zone is formed by the 50%(1.83432) – 61.8%(1.83117) Fibonacci retracement levels. Until both these key support zones hold my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis – GBPAUD Short Term Forecast

Technical Analysis & Forecast Summary

GBPAUD D1(Daily) Chart Analysis 

  • Key Support Zone, Bullish Divergence

GBPAUD H4(4 Hours) Chart Analysis 

  • Resistance Breakout, Higher Highs, ADX Indicator

GBPAUD H1(1 Hour) Chart Analysis 

  • Bullish Trend Pattern, ADX Indicator, Two Key Support Zones

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 short term 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.

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?

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

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team

 

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