MONTHLY : GBPAUD on the monthly chart if we analyze on a wider note, the angles and structure of emphasis would be mostly indicating alot of room for bullish impulse specifically after breaking our strong resistance at 1.18430. Now 1.18700 and 1.18850 would be its next target under monthly time frame but thats for long term investors rather than intraday traders. The current market structure was our centre of focus to point the bullish momentum which cannot be ignored. 

WEEKLY : There is a strong hammer candlestick formed on 4th July but a weekly resistance awaits for breakout which might not be the current market sentiments, why ? we will explain in a while breaking down the analysis in multiple time frames. So in weekly chart it has retraced from 23.6 fibb after staying at 1.18220 for a couple of weeks and then broke out of the weekly price action i.e 1.18430. Only the demand in this zone is week if compared to recent market structure so we might face a short reversal on small time frames. 

DAILY : GBPAUD has made a higher high in daily time frame and has reached our upper trend line/ resistance from which we are expecting the market to take a short fall/ correction before developing any bullish strength. There are signs of vivid divergence being made in some of the brokerages while in some the RSI has crossed its previous high and reversing the divergence instead. But what so ever the case is, the pair will be taking a retrace from the current market price towards our prescribed take profit zone.

4 HOUR : A clear divergence is made on H4 chart with the concepts of it clearly supporting a dovish stance for GBPAUD. For intraday and traders this is a good sell zone to execute entries with SL at our daily highs and TP at our daily supports. 

GBPAUD H4 Divergence

Jul 18 2021

Stop Loss -0.33%

Holding time 3d16hr

1.85870

Entry price

1.86490

Stop loss price

1