This week we lay our focus on the pair of GBPCHF. There’s a clear well-formed triangle on the weekly analysis. The price is currently at the lower boundary of the triangle. Of more significance is major support zone that has lasted for the last three years, which coincides with the current price levels, making this pattern stronger for us price action traders.
We are looking at a likely scenario of the bulls taking over the market as prices are at a confluence level. However, before we can go long we will watch keenly for reversal signals from the daily timeframe to confirm our bias.
A closer look at this pair reveals a well-formed descending price channel that has held grounds since July 2016. We have an imminent break-out of the channel as illustrated on the chart from last week’s weekly candle that closed high above the upper boundary of the channel. This is a significant turn of events, for the pair, with bulls showing more buying muscles to keep the prices scaling high.
Our job as price action traders is to look for any slight weakness on this pair, especially on the lower timeframes of the Daily and the 4Hr, in order to rejoin the buying momentum. Should the buyers keep up their push, the next target level is at the major resistance zone at the price of 1244.86.