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GBP/CHF: Bearish breakout, the Bear is on its track

EagleFX

GBP/CHF produced a bearish Marubozu candle last Friday. The price after being bearish consolidated, and Friday’s candle breached consolidation support. The sellers may keep their eyes on the pair to go short, and they may drive the price towards the South. Major intraday charts show that the price has been in a bullish correction. The sellers may go short upon getting bearish reversal at a significant level. Let us now have a look at three key charts.

Chart 1 GBP/CHF Daily Chart


The chart shows that the price has been heading towards the South with good bearish momentum. The price had a bounce at the level of 1.17650 and consolidated for a while. Friday’s candle breached through consolidation support and closed well below it. Thus, the sellers may go short below the breakout candle’s lowest low and drive the price towards the South. The price may find its next support around 1.12000. If today’s candle comes out as a bullish candle closing above 1.17650, the price may get choppy again.

Chart 2 GBP/CHF H4 Chart


The chart shows that the price has kept making lower lows upon having a bullish correction. The price breached through the level of 1.17510 last Friday and traded below the level for several candles. Upon finding its support, the price produced a bullish engulfing candle. It may head towards the breakout level. If the chart produces a bearish reversal candle, the sellers may go short in the pair and drive the price towards the South. The price may find its next support around 1.15700. If the price breached through the breakout level and makes a bullish breakout, the buyers may push the price towards the level of 1.17900.

Chart 3 GBP/CHF H1 Chart


The chart shows that the price after making a strong bearish move found its support at 1.16800. It consolidated around the level and produced a bullish engulfing candle. The price has been bullish since then. The level of 1.17320 may work as a level of resistance. If the level produces a bearish reversal candle, the sellers may look to go short in the pair. The price may find its next support around 1.16100. In case of a bullish breakout, the price may head towards the North and find its resistance around 1.17600.

Considering these three charts, the pair may produce another bearish candle on the daily chart. As far as the daily chart is concerned, the price may make a long bearish move. The H4 and the H1 chart may add more fuel to it.

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