This week we will look at the British Pound vs The US Dollar (GBPUSD) which we had covered a fortnight ago. At the time, price had just closed above the mother candle, indicated by the breakout candle. Our bias was bullish , ensuing the breakout.
Bulls caused a rally ,halting at the upper boundary of the descending channel. This boundary acted as resistance. Remember in the previous analysis, we mentioned that the major trend is bearish. Furthermore we are in a descending channel. Therefore we monitor the pair closely to see whether the bearish trend will resume.
Looking at the daily chart of The Dollar vs The Swiss Franc (USDCHF), we can see the formation of a descending triangle. Price is forming lower highs being resisted by the upper boundary as well as lows being supported by the lower boundary of the triangle. During the past week we have seen bullish strength coming in, leading to a breakout of the channel.
Following the break out of the price pattern, we watch closely to see if there will be a confirmation, after which we will follow price.