GBP/CHF has been bearish in the daily chart. The pair produced a bearish candle last Friday as well. The candle closed within the level where the price had a bounce earlier. The chart may produce a bullish reversal candle on the level again and push the price towards the North. However, intraday sellers may keep their eyes in the pair to go short below Friday’s lowest low. Let us now have a look at three vital charts.
Chart 1 GBP/CHF Daily Chart
The chart shows that the price made a reversal at the level of 1.22150. Upon producing a bearish engulfing candle, it has been heading towards the South. On its way, it made a bullish correction and continued its journey. Last Friday’s bearish candle closed within 1.17465. The chart shows that the price had a bounce at the same level earlier and made a bullish move. Thus, the buyers may wait to get a bullish reversal candle around the level again. On the other hand, the price in the daily chart has been bearish biased. Intraday sellers may go short below Friday’s lowest low, which may end up making a daily bearish breakout.
Chart 2 GBP/CHF H4 Chart
The chart shows that the price made a strong bearish move and had a bounce at 1.17465. The chart has already produced a bullish candle. If it continues its bullish correction, the level of 1.18565 may work as a significant level to keep an eye at. If the level produces a bearish reversal candle, the sellers may go short and drive the price towards the South further. In case of a bullish breakout, the price may head towards the North. The level of 1.19650 may work as a level of resistance.
Chart 3 GBP/CHF H1 Chart
The chart shows that the price has kept making lower lows upon having consolidation. The level of 1.17465 has been working as a level of support, where the price had several bounces. The price has been in a bullish correction. Upon finding its resistance, if it produces a bearish reversal candle, the sellers may go short below 1.17465. There is enough room for the price to head towards the South. This may attract more sellers to sell the pair. The level of 1.16500 may work as the level of support next.
The daily, the H4, and the H1, these three charts are bearish biased. However, the level of support in the daily chart may play a significant role. The sellers are to wait for a bearish breakout and the buyers are to wait for a bullish reversal candle to dominate in the pair.