The Daily time frame is examined in today’s GBPCHF analysis.
Coverage of price action is from October 6, 2016 to current date.
Over a year and 7 months of price action in the GBPCHF remained within the bullish channel shown on the chart before the GBPCHF attempted a breakout upwards outside of the channel on April 11, 2018.
The failed breakout saw retracement of the GBPCHF back into the bullish followed by a breakout of the channel downwards on August 10, 2018. A bearish channel (tentative) is also drawn on the chart and is used to describe current market action from April 25, 2018 to Friday close (December 21, 2018).
Any short (sell) position would have to wait till at least price reaches within and/or successfully tests the upper limit of the current bearish channel. 1.32960 and 1.31517 is expected to provide resistance on a breakout above the upper limit of the bearish channel.
Any possible long (buy) position(s) alternatively is/are better initiated when the bottom of the channel is successfully tested and confirmed by momentum.
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