GBPCHF Short Term Forecast Follow Up And Update

Hi Traders! GBPCHF short term forecast follow up and update is here. On March 23rd I shared this “GBPCHF Short Term Forecast And Technical Analysis” post in our blog. In this post, let’s do a recap of this setup and see how it has developed now. 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!

My Idea

On the H4 chart, we could see that the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like a correction has happened and the price which was moving higher reached a key resistance zone formed by the 61.8%(1.24008)Fibonacci expansion level of the first wave of the correction and the 61.8%(1.24155) Fibonacci retracement level of the bearish trend pattern. The price respected this key resistance zone and is currently bouncing lower from this zone. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 1.24147 and the second high that has formed at 1.24192 based on the MACD indicator which we may consider as another evidence of bearish pressure. So everything looks good here for the bears and until the key resistance zone holds my short term view remains bearish here.