GBPCHF Multi Time-frame Chart Analysis
I will be analyzing this currency pair with the monthly, weekly, daily & 4 HR charts working our way down from the monthly to the 4 HR time-frame.
Let us start.
MONTHLY TIME-FRAME
You can observe the trend line sloping downwards. You can also observe the bearish engulfing pattern formed off the trend line which acts as a resistance level. Now that we have gotten our bias for a sell, let us work our way downwards to the lesser time-frames.
You should also observe that in the last 2 months price has not gone below 1.26458 which is identified with a blue line on this chart We will have a clearer look on the weekly chart
WEEKLY TIME-FRAME
There is a visible up trend on the weekly chart with the support at 1.26458 which is almost coinciding with the 38.20% Fibonacci level. If we are to enter a sell trade, we have to wait for price to drop below the support level 1.26458. You can see that pressure is being mounted on this level and we should see it break any time soon. We might want to place a pending SELL STOP order right under it. Let us go to the daily time-frame and see clearer how price is reacting to this key support level. Connecting the highs of the last two weekly candles will give us a clearer picture on the lesser time-frames.
We will be focusing on the area in the blue rectangle next. Observe that i joined the weeks of the last 2 weekly candles with a trend line.
DAILY TIME-FRAME
It should be clear from this chart that we should soon be seeing price break the support level 1.26458. Let us take a look at the 4 HR time-frame.
4 HR TIME-FRAME
Observe the descending triangle then also observe the huge bearish engulfing candle that just formed off the trendline on the 4 HR time-frame.
In conclusion, we are expecting a breakout from the support level. I will update this trade with entry, stop loss & take profit targets once the market opens for the week and i am able to determine such. Kindly let me know your thoughts on this analysis in the comment section.
Let us start.
MONTHLY TIME-FRAME
You can observe the trend line sloping downwards. You can also observe the bearish engulfing pattern formed off the trend line which acts as a resistance level. Now that we have gotten our bias for a sell, let us work our way downwards to the lesser time-frames.
You should also observe that in the last 2 months price has not gone below 1.26458 which is identified with a blue line on this chart We will have a clearer look on the weekly chart
WEEKLY TIME-FRAME
There is a visible up trend on the weekly chart with the support at 1.26458 which is almost coinciding with the 38.20% Fibonacci level. If we are to enter a sell trade, we have to wait for price to drop below the support level 1.26458. You can see that pressure is being mounted on this level and we should see it break any time soon. We might want to place a pending SELL STOP order right under it. Let us go to the daily time-frame and see clearer how price is reacting to this key support level. Connecting the highs of the last two weekly candles will give us a clearer picture on the lesser time-frames.
DAILY TIME-FRAME
It should be clear from this chart that we should soon be seeing price break the support level 1.26458. Let us take a look at the 4 HR time-frame.
4 HR TIME-FRAME
Observe the descending triangle then also observe the huge bearish engulfing candle that just formed off the trendline on the 4 HR time-frame.
In conclusion, we are expecting a breakout from the support level. I will update this trade with entry, stop loss & take profit targets once the market opens for the week and i am able to determine such. Kindly let me know your thoughts on this analysis in the comment section.
Comment:
Enter trade at the close of the bearish engulfing on the 1 HR chart.
Stop Loss: 1.26701
Take profit targets will be updated shortly.
Stop Loss: 1.26701
Take profit targets will be updated shortly.
Trade active
Comment:
Set TAKE PROFIT.
1.24976
1.24976
Comment:
Trade running +30 pips in profit
Let's patiently wait for a pullback, probably to the 20 MA Patience is key.