The 2 hour tf chart of the GBPCHF is shown in this analysis, and commentary is provided below based on the numbers marked on the chart:
(1) The main trendline on the 2 hour timeframe arising from where the double bottom formation was completed. The bullish trendline is expected to provide support for the GBPCHF should selling continue past (2) which is discussed next.
(2) Bullish trendline in the GBPCHF established using the September 21, 2018 and October 26, 2018 lows. Price action closing below this trendline is bearish and the next support for price action is anticipated to be the main trendline (1). Trendline (2) is thus currently more relevant than (1) for further assessment of price action.
(3) A chart pattern best described as a pennant. Price breaking to the upside of the pennant is bullish, with the minimum a return to the previous high at ~1.31159 being the minimum expectation for the GBPCHF. Confirmation of any upside breakout by momentum is of great importance.
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