Hi Traders! GBPCHF technical analysis and short term forecast is here. The way I would like to analyze the chart for setups is based on multi-timeframe confirmations because in my POV if we get more evidences on different timeframes for the same direction then it makes the setup much more reliable. If you would like to learn more about the way we trade and the technical analysis we use then check out the Home Trader Club Spoiler alert – free memberships are available! Let’s start our analysis from the highest timeframe which will be the daily chart here.
GBPCHF D1(Daily) Chart Analysis – Range, Parabolic Sar
On the daily chart, after the strong bullish move currently, it looks like a correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has reached the bottom of this range, respected it and bounced higher from it. The price is currently above the middle of this range and it still has room higher towards the top. In addition to this, based on the Parabolic Sar we could see that the dot is below the price which we may consider as another evidence of bullish pressure. Also, currently there are no signs opposing this bullish view at the moment. So based on all this, my short-term view is bullish here and we may now move down to lower timeframe and look for evidences supporting this bullish view.
GBPCHF H4(4 Hours) Chart Analysis – Downtrend Line Breakout, Higher Highs, ADX Indicator, Parabolic Sar
On the H4 chart, we could see that the price which is moving higher has broken above the most recent downtrend line and is holding above it. Also, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. We may consider these as other evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as yet another evidence of bullish pressure. So based on all this, until the strong support zone shown in the image below(marked in green) holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks.
Technical Analysis & Forecast Summary
GBPCHF D1(Daily) Chart Analysis
- Range, Parabolic Sar
GBPCHF H4(4 Hours) Chart Analysis
- Downtrend Line Breakout, Higher Highs, ADX Indicator, Parabolic Sar
Trading Tips
It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this short-term buy setup then you can use any setup and strategy that you have in your arsenal to look for bullish moves and join this buy trade.
Also, don’t forget to protect your buy trade using a stop loss and make sure to set a target and keep a proper risk/reward ratio.
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Arvinth Akash
Home Trader Club Team
