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 H4 chart here.
GBPCHF H4(4 Hours) Chart Analysis – Bullish Divergence, RSI Indicator, Higher Highs, Bullish Hidden Divergence
On the H4 chart, the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 1.17869 and the second low that has formed at 1.15283 based on the MACD indicator. We also have this bullish divergence on the RSI indicator as well, we may consider these as evidences of bullish pressure. The price then moved higher and broke above the high at 1.16838 thus creating higher highs, which we may consider as another evidence of bullish pressure. Currently, it looks like a correction is happening and the price which is moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 1.15310 and the second low that has formed at 1.16127 based on the MACD indicator which we may consider as yet another evidence of bullish pressure. So, everything looks good here for the bulls and we may now move down to lower timeframe and see if we can find evidences supporting this short term bullish view.
GBPCHF H1(1 Hour) Chart Analysis – Bullish Trend Pattern, Bullish Divergence, Stochastic Oscillator, Two Strong Support Zones
On the H1 chart the price which was moving higher has created a bullish trend pattern in the form of three higher highs, 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 between the first low that has formed at 1.16350 and the second low that has formed at 1.16127 based on the MACD indicator. In addition to this, based on the Stochastic Oscillator we could see that the price has reached its extreme. We may consider these as 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 Divergence, RSI Indicator, Higher Highs, Bullish Hidden Divergence
GBPCHF H1(1 Hour) Chart Analysis
- Bullish Trend Pattern, Bullish Divergence, Stochastic Oscillator, Two Strong Support Zones
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 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.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
