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 H4 chart here.
GBPCHF H4(4 Hours) Chart Analysis – Bullish Hidden Divergence, Stochastic Oscillator
On the H4 chart, we have a bullish rally and based on the current scenario, it looks like this bullish rally is about to continue further. Currently, it looks like a pullback is happening with the price creating a bullish hidden divergence formed between the first low that has formed at 1.09896 and the second low that has formed at 1.12287 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 which we may consider as yet another evidence favouring this short-term bullish view. Also, there are no signs opposing this short-term bullish view at the moment. So everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidence supporting this short-term bullish view.
GBPCHF H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Bullish Divergence, Two Strong Support Zones
On the H1 chart 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 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 and the price which is moving lower has reached a strong support zone. We also have a bullish divergence that has formed supporting the H4 bullish hidden divergence between the first low that has formed at 1.12298 and the second low that has formed at 1.12287 based on the MACD indicator, we may consider this as another evidences of bullish pressure. There are two possible scenarios from here, the price might move higher from the current zone or alternatively if it moves lower then the next area to look for bullish setups with bullish evidences would be the second strong support zone.
Technical Analysis & Forecast Summary
GBPCHF H4(4 Hours) Chart Analysis
- Bullish Hidden Divergence, Stochastic Oscillator
GBPCHF H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Bullish Divergence, Two Strong Support Zones
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.
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!
Home Trader Club Team