GBP/CHF consolidated around a level of resistance for several days. It produced a bearish engulfing candle day before yesterday. Yesterday’s candle came out as a bearish pinbar. The daily chart suggests that the price may make a bearish move if it breaks yesterday’s lowest low. Intraday charts show that the price made a bullish correction. Upon finding its resistance, it headed towards the South. A breakout at the level of support may attract the sellers to go short in the pair and drive the price towards the downside. Let us now have a look at three vital charts.
Chart 1 GBP/CHF Daily Chart
The chart shows that the price had a rejection at the level of 1.20200 and produced a bearish engulfing candle. However, it did not make a bearish move but kept consolidating around the level. At the second rejection, the chart produced another bearish engulfing candle followed by a bearish pinbar. If the price makes a breakout at the level of 1.18700, the sellers may go short in the pair and drive the price towards the level of 1.17450.
Chart 2 GBP/CHF H4 Chart
The chart shows that the price made a strong bearish breakout at the level of 1.19300 and traded below the level for several candles. The price then made a bullish correction upon finding its support around 1.18700. It had a rejection at 1.19300 and produced a bearish inside bar. Since then it has been bearish, however, the level of 1.18700 has been holding the price as a level of support. A breakout at the level may drive the price towards the level of 1.18200. On the contrary, if the level produces a bullish reversal candle, the buyers may wait for the price to make a breakout at 1.19300 to go long in the pair.
Chart 3 GBP/CHF H1 Chart
The chart shows that the price made a bearish move upon producing a bearish engulfing candle. It has been consolidating within 1.18725-1.18900. At the last rejection, it produced a bearish engulfing candle. The sellers may wait to go short below the level of 1.18725. The price may find its next support around the level of 1.18385. On the other hand, if the price produces a bullish reversal candle at the level of support, the buyers may go long above the level of 1.18900. The price may find its next resistance around 1.19650.
These three charts are bearish biased. A bearish breakout at the level of support may help the Bear dominate in the pair for some days.