GBP/CHF has been in an ascending channel pattern recently, with a possible double top forming.
What is a double top?
A double top occurs when the price moves upward and struggles to continue its bullish momentum and so it returns back down only to move upward again (forming the neckline) and reverse at the same price level. At this point, we look for the price to break the neckline on its way down. This creates a double top' pattern. With this pattern, there must be a visible neckline in order for there to be a double top set up.
The break of the neckline can show the potential for a short trade. it is important to make sure the neckline has been broken before entering a short trade.
If the neckline is clearly broken, we could expect the price to return to the support level at 1.1865
I will be keeping an eye on this pair for the rest of the trading hours today and on the opening on Sunday night.
What is a double top?
A double top occurs when the price moves upward and struggles to continue its bullish momentum and so it returns back down only to move upward again (forming the neckline) and reverse at the same price level. At this point, we look for the price to break the neckline on its way down. This creates a double top' pattern. With this pattern, there must be a visible neckline in order for there to be a double top set up.
The break of the neckline can show the potential for a short trade. it is important to make sure the neckline has been broken before entering a short trade.
If the neckline is clearly broken, we could expect the price to return to the support level at 1.1865
I will be keeping an eye on this pair for the rest of the trading hours today and on the opening on Sunday night.