GBP/CHF produced a bearish engulfing candle on Wednesday. Yesterday’s daily candle came out as a bullish inside bar. Thus, if today’s candle comes out as a bearish candle, the sellers may drive the price towards the South. In that case, the pair may remain bearish for a while. However, major intraday charts, the H4, and the H1 chart show that the pair may get bullish and head towards the North. Let us now have a look at those three charts.
Chart 1 GBP/CHF Daily Chart
The chart shows that the pair made a bearish move upon having a rejection at a double top resistance. On its way, it made a breakout at 1.19250. The price headed towards the breakout level and produced a bearish engulfing candle. Yesterday’s candle came out as a bullish inside bar. Thus, if the pair produces a bearish engulfing candle today, the pair may get very bearish and head towards the South to make new a lower low. However, if we look at the H4 chart, it shows that the pair may get bullish and head towards the North. Let us have a look at the H4- GBP/CHF chart.
Chart 2 GBP/CHF H4 Chart
The chart shows that the price produced a bullish engulfing candle and headed towards the North with good bullish momentum. The price found its resistance at 1.18800. It has been in consolidation. If the price makes a bullish breakout at 1.18800, the buyers may push the price towards the North. It may find its next resistance around 1.19380. Though the daily chart is bearish biased, the sellers are to wait to go short as far as the H4 chart is concerned.
Chart 3 GBP/CHF H1 Chart
The H1 chart shows that the price after being bullish gets caught within 1.18790-1.18540. The level of 1.18540 produced a bullish Marubozu candle and pushed the price towards the upside. The price has been bearish, and it may come back to consolidation support. If the level produces a bullish reversal candle, the buyers may go long above 1.18790. The price may find its next resistance around 1.19150. In case of a bearish breakout at consolidation support, the price may find its support around 1.18100.
The daily chart looks good for the sellers. The H4 chart looks good for the buyers, and the H1 chart shows that the buyers slightly have the upper hand. To sum it up, traders are to be careful to deal with the pair today.