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 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 – Strong Support Zone, Bullish Divergence, Parabolic Sar
On the daily chart, the price which is moving lower has reached a strong support zone, respected and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 1.21175 and the second low that has formed at 1.20947 based on the MACD indicator, which we may consider as evidence of bullish pressure. In addition to this, based on the Parabolic Sar we could see that the dots are below the price which we may consider as another evidence of bullish pressure. So everything looks good here for the bulls and until the strong support zone holds my short term view remains bullish here. We may now move down to lower timeframe and look for evidences supporting this bullish view.
GBPCHF H4(4 Hours) Chart Analysis – Heikin Ashi Candles, Higher Highs, ADX Indicator
Looking at the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Also, currently there are no signs opposing this short term bullish view. Until the strong support zone holds my short term view remains bullish here and I expect the price to move higher further.
Technical Analysis & Forecast Summary
GBPCHF D1(Daily) Chart Analysis
- Strong Support Zone, Bullish Divergence, Parabolic Sar
GBPCHF H4(4 Hours) Chart Analysis
- Heikin Ashi Candles, Higher Highs, ADX Indicator
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 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.
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Arvinth Akash
Traders Academy Club Team
