GBPCHF pair has been moving in a well-defined range (1.2100 ~1.2420) since early March. Now, the price has reached a key resistance level and we can see a few bearish patterns being formed. In the hourly chart, we can see a rising wedge pattern being formed as the price reaches near the resistance level. We can also clearly see a bearish divergence in RSI. Therefore, we are looking to enter sell positions.
The entry criteria:
Currently, a double top has been formed, but another lower shoulder could be formed to complete a head and shoulder pattern. We are looking for the price to breakout from the neckline, with hourly candle closing below the neckline area. Then we will look to enter sell positions at neckline area, which is 1.2340 approximately, to capture the retest. Our first target is the 1.2220 area and the second target is the bottom of the range channel, 1.2100 area.
The entry criteria:
Currently, a double top has been formed, but another lower shoulder could be formed to complete a head and shoulder pattern. We are looking for the price to breakout from the neckline, with hourly candle closing below the neckline area. Then we will look to enter sell positions at neckline area, which is 1.2340 approximately, to capture the retest. Our first target is the 1.2220 area and the second target is the bottom of the range channel, 1.2100 area.
Trade closed: target reached
Second target reached. Now price has bounced up from the support. We will come back with potential buy setups
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.