The GBPCHF has corrected sharply after approaching its descending 200 DMA as visible in this H4 chart. This currency pair has now corrected and formed a double bottom. We expect the GBPCHF to stabilize around current levels and launch a rally which will lead to a breakout above its 50 DMA and potentially into its descending 200 DMA.
MACD has improved during this correction and has formed a higher low which is a bullish signal. We also expect MACD to inch closer to its centerline during the move higher with a potential bullish crossover. RSI has broken down into extreme oversold territory and a breakout back into oversold territory should fuel the rally.
GBP/CHF in recent weeks, has been experienced many reformation with a gradual Downtrend that Sellers Down price increases obtained the lowest price of 1.44662.it is obvious in the picture below, the price by reaching to the ascending trend line made of 2 Bottom prices has been stopped from more descending(sellers used this level to leave their trades) and the buyers are hopeful about ascending of price from this supportive level.Right now price is above 5-day moving Daily and h4 time frames that show an uptrend during the next candles.
As it is obvious in the picture below, there is a harmonic Gartley pattern between the Top price of 1.51213 and the Bottom price of 1.44662 that there is a potential for changing price direction from D point of this pattern. Stoch indicator is in saturation sell area that confirms the current bottom price and warns about ascending of price during the next candles.In case of ascending of the price, one of the buyers target will be the drawn Down Trendline .Generally until the price level of 1.44662 is preserved, price will have the potential for reformation and ascending.
GBP/CHF since 2014.03.17 till now was in a uptrend that Buyers were successful in achieving the highest price of 1.53000. Right now in long term time frames such as monthly and weekly, price is closed above 5-day moving average that shows a consistent uptrend and more ascending in long period of time. Price has been stopped from more ascending with reaching to the resistance edge of up channel technical pattern and also the resistance round level of 1.53000(Buyers use this lever to exit their trades) and starts to descend. As it is obvious in the picture below, there is an AB=CD harmonic pattern between the bottom price of 1.47799 and the top price of 1.53000 with ideal ratios of 0.382 to 2.24 that warns about descending of price from the D point of this pattern.
Currently in 4H time frame with formation of Shooting star (the failure of buyers in reaching to the higher prices) and Engulfing candlestick pattern, price has been stopped from more ascending and there is a possibility of formation of a top price and finally descending of the price. Stoch indicator in 4H time frame is in saturation buy area and with the next cycle warns about descending of price during the next candles. Currently the first important warning for descending of price is breaking of the support level of 1.52387. Generally until the mentioned top price is preserved, there is the potential for uptrend reformation.
(GBPCHF)Price since the end of 2013 till now was in strong and consistent uptrend with a little price reformation and buyers were successful in achieving the highest price of 1.55441 .Price has formed a top price with reaching to the specified support levels in the picture below and it has stopped from more ascend and has started a little descend with shows exit of some buyers from their trades.In weekly time frame with formation of Evening star candlestick pattern in previous candles, there is a warning for formation of a top price and vulnerability of uptrend.
As it is obvious in the picture below, there is AB=CD harmonic pattern with ratios of 61.8 and 161.8 between top price of 1.55441 and the bottom price of 1.40389 that warns about changing price direction from the D point of this pattern. Stoch indicator is in saturation sell area follows the top price of 1.55441 and warns the possibility of descend during the next candles. Generally according to the technical signs in the price chart until the mentioned Resistance levels are preserved, the price has the potential to decrease and descend.
