The GBP/CHF pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined bearish channel pattern. This suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming minutes or hours.
Key Points:
Sell Entry: Consider entering a short position around the current price of 1.1222, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.
Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 1.1151 and 1.1108. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.
Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the channel, ideally around 1.1252. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.
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Stronger CHF: The Swiss Franc (CHF) has been strengthening recently due to its safe-haven status amid ongoing geopolitical tensions and concerns about a global economic slowdown. This could put downward pressure on GBP/CHF.
Weak UK Data: Recent data releases from the UK, including the confirmation of a technical recession and weaker-than-expected retail sales figures, continue to raise concerns about the UK economy. This could weaken the Pound Sterling (GBP).