GBP/CHF is At a Corrective Volatile Structure: Need A Breakout
July 01, 2021|The Forex Secret –GBP/CHF remained within an extreme volatile condition since April 2021 that requires a stable price direction with a bullish or bearish breakout. Let’s have a look at the price action of GBPCHF from The Forex Secret team.
GBP/CHF Bears Awaits a Breakout
GBP/CHF price is trading within the range between 1.2800 to 1.2628 level for a considerable time. Moreover, the current price behavior with the dynamic 20 EMA and the candlestick formation is indicating a correction to the price that may surge after completing the accumulation phase.
In the above image, we can see the daily chart of GBPCHF where the price is getting rejected from the 1.2800 resistance level. In this price context, investors need a daily candle close below the dynamic 20 EMA to consider the upcoming short-term trend as bearish.
On the other hand, in the MACD Histogram, the Histogram is still bullish but losing its momentum. Therefore, investors should find a negative Histogram below the zero lines to consider the upcoming price pressure as bearish.
Conversely, a stable bullish daily close above the 1.2800 level with an impulsive bullish pressure may make the current market pressure invalid.
When Should You Sell GBPCHF?
As of the current observation, GBPCHF has a higher possibility of moving down as long as it is trading below the 1.2800 resistance level where the primary target would be the 1.2680 level.
However, before opening a sell position, investors should find a stable daily close below the dynamic 20 EMA and intraday sell formation.