GBP/CHF to make an upside breakout for the trend continuation

EagleFX Team EagleFX

GBPCHF has been bullish on the daily chart for the last six weeks. The price has been heading towards the North by making breakouts towards the upside. The pair after finding support made a breakout at a down-trending trend line; the price had a consolidation; confirmed the trend line breakout and came out from the horizontal range. Since then the price has been bullish with good buying pressure.

Let us have a look at the GBP/CHF Daily chart

Chart 1 GBP/CHF Daily Chart

The chart shows that the price was down-trending before the trend line got breached. The price after making the breakout at the trend line had a long consolidation. A bullish Pin Bar followed by a bullish Engulfing Candle set a strong bullish tone, and the pair came out from the range by making a breakout at the horizontal resistance of the consolidation zone.

The price has found another horizontal support level where it had a strong bounce yesterday.

Let us have a look at the chart below

Chart 2 GBP/CHF Daily Chart

The chart explicitly shows that the level of 1.2350 is a significant level where the price had reacted heavily earlier. The level got breached, and yesterday's daily price had a strong bounce which eventually made the daily candle be a bullish Pin Bar. If today’s intraday price makes a breakout at the day before yesterday’s highest high, the price may head towards the North with more buying pressure. Today’s intraday price action has been bullish. Thus, there is a strong possibility that the price makes an upside breakout.

Let us now have a look at the H4 GBP/CHF chart

Chart 3 GBP/CHF H4 Chart

The chart shows that the price had a rejection from the level of 2.3480 and had a pullback. The level of 1.2350 has been working as the level of support here. After producing an H4 bullish engulfing candle at the support level, the price has headed towards the North, and it is right at the resistance level now. If the price continues to push towards the North and makes a breakout, then both the H4 and daily buyers are going to get themselves engaged in buying the pair.

Here is another equation we may count. If the price does not make an H4 breakout at the resistance level but comes towards the South, it may attract the H4 sellers to get them engaged in selling since it would be an H4 Double Top’s resistance.

Equations favor the buyer more here. Let us now wait and see which way the next breakout takes place.

100% Anonymous Trading on EagleFX - Trade NOW!

Author

EagleFX Team

EagleFX

EagleFX Team is an international group of market analysts with skills in fundamental and technical analysis, applying several methods to assess the state and likelihood of price movements on Forex, Commodities, Indices, Metals and

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.