GBP/CHF produced a Spinning Top at a flipped resistance on the daily chart yesterday. The price had its second rejection at the same level, so it may create bearish momentum this time. Major intraday charts look good for the bear as well. Thus, the sellers may keep an eye on the pair to go short today. Let us now have a look at three vital charts.
Chart 1 GBP/CHF Daily Chart
The chart shows that the price headed towards the South at a moderate pace. It had a bounce at 1.17500 and moved towards the North. It consolidated within 1.18900-1.18000. Yesterday, the price had a rejection at the level of 1.19850, and the daily candle closed within the level of 1.18900. The candle came out as a Spinning Top being produced around a significant level of resistance. This may create bearish momentum and drive the price towards the South. The price may find its next support around 1.16000.
Chart 2 GBP/CHF H4 Chart
The chart shows that the price produced a double top. At its second rejection, it produced a bearish inside bar and headed towards the South. On its way, it made a breakout at 1.18970, which has been the neckline of the double top. The price may head towards the breakout level for an upside correction. If the level produces a bearish reversal candle, the sellers may go short below the level of 1.18300. The price may find its next support at 1.17500. The chart shows that it has already produced a bearish reversal candle at 1.18750. If the price gets bearish from here and makes a breakout at the level of support, the price may find its next support at 1.18000.
Chart 3 GBP/CHF H1 Chart
The chart shows that the price made a strong bearish move yesterday. Upon having a bounce at 1.18375, it made an upside correction. The level of 1.18800 seems to be working as a level of resistance. The level has already produced a bearish engulfing candle. If the level keeps driving the price towards the South to make a bearish breakout at 1.18375, the sellers may go short in the pair and drive the price towards the South further. The price may find its next support around 1.18000. In case of a bullish breakout, the price may get choppy within 1.18800 to 1.19000.
Considering these three charts, it seems that the pair may get bearish today as well. If the candle closes as a bearish Marubozu candle, the bear may dominate in the pair in the coming days.