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GBPCHF H4(4 Hour) Chart Analysis – Bullish Trend Pattern, Key Resistance Zone, Bearish Divergence
On the H4 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. In addition to this, the price reached a key resistance zone that has formed based on the 161.8%(1.13839) Fibonacci expansion level of the first wave and the 61.8%(1.14126) Fibonacci expansion level of the second wave. Also, we have a bearish divergence that has formed between the first high formed at 1.13736 and the second high formed at 1.14293 based on the MACD indicator which we may consider as evidence of bearish pressure. So based on all this, my short expectation is bearish and my mid term expectation is bullish here.
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