GBPCHF At Key Area. Two Scenario's
GBPCHF overall is downtrending as you can see on the higher time frames (4H and above). We have added a chart image of the weekly and daily charts below this description.
As you can see on the weekly chart, Price in march had spiked down aggressively to form a new all time low for GBPCHF. This can signify a possible aggressive rise in price in the near future.
Price had recently broken below a larger range and is now trading within a tight range below.
On the 1H we have a clear downtrend towards the bottom of the range and price has failed to break below multiple times.
We have marked two scenario's on the chart, however we have a LONG bias on this pair due to price nearing all time lows.
Short scenario;
If we get a clear break below support, we would like to see price develop a continuation pattern on the 1H or 4H charts to look for shorts.
Long scenario;
We would like to see price break above the minor resistance (blue line), retest and reject this area with strong bullish momentum candles (engulfing/pinbar) to confirm long positions to the top of tight range and possibly further.
Follow us for more analysis and educational content!
As you can see on the weekly chart, Price in march had spiked down aggressively to form a new all time low for GBPCHF. This can signify a possible aggressive rise in price in the near future.
Price had recently broken below a larger range and is now trading within a tight range below.
On the 1H we have a clear downtrend towards the bottom of the range and price has failed to break below multiple times.
We have marked two scenario's on the chart, however we have a LONG bias on this pair due to price nearing all time lows.
Short scenario;
If we get a clear break below support, we would like to see price develop a continuation pattern on the 1H or 4H charts to look for shorts.
Long scenario;
We would like to see price break above the minor resistance (blue line), retest and reject this area with strong bullish momentum candles (engulfing/pinbar) to confirm long positions to the top of tight range and possibly further.