Potential AB=CD from Weekly & Daily of GBPCHF
I am naturally caution with GBP XXX due to the current political climate however;
From the Weekly chart.
Pinbar rejection at the 61.8 Fib level from the Monthly chart.
Therefore this has formed an ABC triangle to the 61.8 level.
Daily
RSI is sloping downwards after rejecting overbought line.
4Hr / 1Hr
Price has formed a consolidation box. I hope that there is a break and retest of the consolidation box. This would validate my entry strategy.
If that happens, I will look for Price Action / Candlesticks to confirm. The stop loss will be small and place in accordance with the candlestick.
Trade
Currently a risk reward of 1:3 can be achieved (if entered now) this is down to next support line.
However, and again if entered now, a risk reward of 1:16 is possible if this behaves as a traditional AB=CD
However if you have more patience , then a much better risk reward can be found.
From the Weekly chart.
Pinbar rejection at the 61.8 Fib level from the Monthly chart.
Therefore this has formed an ABC triangle to the 61.8 level.
Daily
RSI is sloping downwards after rejecting overbought line.
4Hr / 1Hr
Price has formed a consolidation box. I hope that there is a break and retest of the consolidation box. This would validate my entry strategy.
If that happens, I will look for Price Action / Candlesticks to confirm. The stop loss will be small and place in accordance with the candlestick.
Trade
Currently a risk reward of 1:3 can be achieved (if entered now) this is down to next support line.
However, and again if entered now, a risk reward of 1:16 is possible if this behaves as a traditional AB=CD
However if you have more patience , then a much better risk reward can be found.
Comment:
Again Brexit and British issues seems to hold this pair in the same area. Continue to monitor
No sign of major movement yet.
Will continue to monitor