Hi Traders! GBPCHF short term forecast and technical analysis 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 Traders Academy 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 – Key Support Zone, Bullish Divergence, Stochastic Oscillator
On the daily chart, the price which is moving lower has reached a strong support zone. In addition to this while measuring the first wave using the Fibonacci expansion tool the 100%(1.21982) Fibonacci expansion level of the first wave coincides with this strong support zone which makes this a key support zone for us. Also, we have a bullish divergence that has formed between the first low that has formed at 1.22780 and the second low that has formed at 1.21360 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme and is bouncing higher, which we may consider as yet another evidence of bullish pressure. 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 – Bullish Convergence, Strong Support Zone
On the H4 chart, we had a bullish divergence that has formed between the first low that has formed at 1.21869 and the second low that has formed at 1.21360 based on the MACD indicator. Then the price moved higher and broke above the last high at 1.22733 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. Until the strong support zone (marked in red) shown in the image below 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
- Key Support Zone, Bullish Divergence, Stochastic Oscillator
GBPCHF H4(4 Hours) Chart Analysis
- Bullish Convergence, Strong Support Zone
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.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to
And improve your trading with us.
Also, you can get one of our strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
Traders Academy Club Team