Tight range which will lead to big opportunity.
The GBP/CHF pair is in an extremely tight range between the 0.618 resistance(through broken once) and the 0.5 Fibonacci level from my chart. This one was an easy short scalp from the golden pocket resistance with its bearish divergences, but now finds support at 1.31 where i closed my short and opened a long to trade this range. The old day trading resistance of 1.31 has now been broken and looks to try and flip old resistance to support for another move up.
For support we have 1.31 the .236 Fibonacci level, volume POC, and the old resistance which should flip to support. I also have been trading this pair from an in depth Elliott Wave count where we had been in a WXY correction, but have since formed an impulse wave from the bottom of Wave Y at 1.23 which is a good sign for the bulls. The problem that may hinder this is the Brexit news and uncertainty (though I do not trade news, only technicals). Top resistance is still the golden pocket and 1.345. My scalp long got filled on the move down today, so as of writing this I am still in a long day trading position, but I will take a much bigger position by adding upon a break of resistance, or alternately opening a short if we break through support.
There are bearish divergences forming on this pair across the histogram, MACD, RSI and Stochastic RSI is coming down, tweezer top candle stick pair also formed last week, which all came together for a great short opportunity back down to support. So whilst there is strong price action support, there are bearish arguments too mid term.
Therefore until a decision is made i will continue to scalp between 1.326 and 1.314 and open a much bigger trade upon resistance or support breaking.
For support we have 1.31 the .236 Fibonacci level, volume POC, and the old resistance which should flip to support. I also have been trading this pair from an in depth Elliott Wave count where we had been in a WXY correction, but have since formed an impulse wave from the bottom of Wave Y at 1.23 which is a good sign for the bulls. The problem that may hinder this is the Brexit news and uncertainty (though I do not trade news, only technicals). Top resistance is still the golden pocket and 1.345. My scalp long got filled on the move down today, so as of writing this I am still in a long day trading position, but I will take a much bigger position by adding upon a break of resistance, or alternately opening a short if we break through support.
There are bearish divergences forming on this pair across the histogram, MACD, RSI and Stochastic RSI is coming down, tweezer top candle stick pair also formed last week, which all came together for a great short opportunity back down to support. So whilst there is strong price action support, there are bearish arguments too mid term.
Therefore until a decision is made i will continue to scalp between 1.326 and 1.314 and open a much bigger trade upon resistance or support breaking.