On the daily. The chf/gbp has created a falling wedge pattern followed by retest of minor support zone. Hoping price will react to price and go bullish.
Bias at the moment is bullish due to retest of support zone.
So CHF is in a range for the past 3 years, but current fear in the world has boosted its valuation. A historical look show that every peak above the channel top with RSI above 70 on the daily chart has been in anticipation of a turn down. We're gonna bet on history repeating itself.
- Peak over strong channel top
- RSI and Stoch overbought (which has been a good...
It seems we're in the wave 5 of a larger C wave.
wave 3 retraced to 236 so wave 4 has retraced to between 0.618 and 0.78. I think its a good idea to go short now.
Wave 3 went to 0.786 of wave 1 extension, so wave 5 should be even smaller
The CHF has successfuly retested its wedge but has been unable to accelerate higher. Given the current small time pattern, I'd expect a small move up followed by a second retest of the support zone.
Should the pass of least resistance still be the upside, the uptrend should then resume.
The flash crash points a very important series of higher highs and lower highs for British Pound. The GBP is now nearing support where a rally continuation can be seen at least into the .236 or .382 zone. While shorting GBP has been rewarding, it is likely to be bound for a rally.
March will be a sticking point for GBP but for now we do away with politics and...