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, Key Support Zone, Stochastic Oscillator
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 currently reached the bottom of this range. While measuring the big and small wave inside this range using the Fibonacci expansion tool, the 100%(1.10171) Fibonacci expansion level of the big wave and the 100%(1.09878) Fibonacci expansion level of the small wave coincides with the bottom of the range which makes this area a key support zone for us. The price respected this key support zone and is currently bouncing higher from this zone. In addition to this, based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as evidence of bullish pressure. Also, currently, there are no signs opposing this bullish view. We may now move down to a lower timeframe and see if we can find evidences supporting this short term bullish view.
GBPCHF H4(4 Hours) Chart Analysis – Bullish Trend Pattern, Two Strong Support Zones
Looking at the H4 chart, we could see that the price which is moving higher has created a bullish trend pattern in the form of three higher highs, and higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, also we had two strong resistance zones that have formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout, these strong resistance zones are acting as two strong support zones for us. So based on all this, until both these strong support zones shown in the image below(marked in green) hold 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, Key Support Zone, Stochastic Oscillator
GBPCHF H4(4 Hours) Chart Analysis
Bullish Trend Pattern, Two Strong Support Zones
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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Happy Trading!
Arvinth Akash
Home Trader Club Team
