Forex Market Ideas

GBPCHF Short Term Forecast And Technical Analysis

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!

GBPCHF H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Key Resistance Zone, Bearish Divergence

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.

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 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.

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

Join Traders Academy Club Now

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!

 

Happy Trading!

Arvinth Akash
Traders Academy Club Team

Advertisement

Click To Join Our Community Telegram Group

Arvinth Akash

Recent Posts

NZDCHF Short Term Forecast Update And Follow Up

Hi Traders! NZDCHF short term forecast update and follow up is here. On September 5th,…

16 hours ago

GBPCAD Technical Analysis And Short Term Forecast

Hi Traders! GBPCAD technical analysis and short term forecast post is here. We do our…

17 hours ago

Stocks, Bonds Rise As Traders Cheer Treasury Pick: Markets Wrap

Stocks and Treasuries rose as traders welcomed Donald Trump’s pick of Scott Bessent for US Treasury Secretary, betting the…

2 days ago

Weekly Summary And Review 22nd November 2024

Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of November…

5 days ago

Futures Subdued As Nvidia’s Forecast Disappoints, Geopolitical Tensions Mount

U.S. stock index futures were subdued on Thursday, as AI-heavyweight Nvidia's revenue forecast failed to…

6 days ago

Litecoin Short Term Forecast And Technical Analysis

Hi Traders! Litecoin short term forecast and technical analysis is here. We do our analysis…

6 days ago