GBPCHF – Looks to be forming a bullish reverse Head and Shoulders

Ian Coleman FXStreet

Technical

Monthly: A bearish Elliott Wave pattern (5-waves) was compete at the 2011 low of 1.1462. Price action is holding within a triangle formation (107 months of mixed trading). Ichimoku Cloud resistance is seen at 1.4070. Marabuzo resistance May price action is located at 1.3365.

Weekly: For the last 92 weeks we have held within a bullish channel formation. The trend line resistance is currently located at 1.4041. Bespoke resistance is seen at 1.3900. This level is in-between the 50 and 61.8% pullback levels of 1.3676 and 1.4121. This is our prime long-term short entry level.

Daily: Levels close to the 261.8% extension level of 1.2958 (from 1.3856-1.3513) have found buyers. We have consolidated in the 1.3270 to 1.3023 range for 37 days. This limited movement looks to be forming a bullish reverse Head and Shoulders pattern. A break of 1.3280 and the measured move target is 1.3510.

Action:

We look to Buy a break of: 1.3280

Stop: 1.3150

Targets: 1.3510 and 1.3900

Article produced by Pia First for Orbex Limited
Visit PIA First for FX, Commodity & Stock Market trade ideas

Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.