Hi Traders! Today I am sharing with you the GBPCHF short term forecast and technical analysis post. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting useful tips and hacks about the MT4 platform could be found here. 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!
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.
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 sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.
Also, don’t forget to protect your sell 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
Traders Academy Club Team
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