My view on GBPCHF

The GBP (British pound sterling) has traded heavier in recent days and pushed lower against its opponent. These moves affect by the latest Brexit pools/survey which shows some shifting to ‘leave the EU’.

We can see the effect on GBPCHF. Yesterday, price on GBPCHF printed a huge daily bearish engulfing bar and it happens on the relevant level. Price move lowers and rejecting the daily resistance level (Picture 1). I was tempted to go short, but ended not doing it because I’m not to keen to trade against the trend.

In picture 2 below, we can see that price already formed a higher-high formation. This formation followed by price movement that was broken through the old resistance/new support level. Price then moving higher to the next resistance level. Recently, price on GBPCHF rejected this resistance level and headed to the new support level and try to retest it.

What I’m doing, for now, is waiting what the market will offer at the new daily support level. If the price could form a bullish price action at that level, I will go long.

Picture 1. GBPCHF daily chart – zoom out

GBPCHFDaily-160601-zoom out

Picture 2. GBPCHF daily chart – zoom in

GBPCHFDaily-160601-zoom in

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2 comments

  1. Gabor · · Reply

    And what should be the scenario if it’s breaking old resistance line? (But the RSI is strong oversold)

    Like

    1. heya Gabor…

      If price breaks the old resistance/new support, I will treat that level as the flip level. Or as the old support/ new resistance level and will hunt for short trade…

      About the RSI, I’m not using the indicator, but in my opinion (as the newbie), as long as the RSI fit your strategy and make you feel comfortable it’s okay….but I’m not using indicator for now. 🙂

      cheers.

      Like

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