GBPCHF: Good trade setting up
The GBPCHF is trading at a long term support level around 1.7220, when the market trades at an important long term S or R level, it usually trades in a small range until it breaks it and then reaches the next S or R level. Please take a look at the next chart.
The GBPCHF is trading in a short term range between: 1.7266 and 1.7189.
What is interesting about this charts, is that if the GBPCHF breaks the short term range for the downside, its next long term support level is at 1.6719, more than 500 pips… On the other side, if it breaks for the upside, its next long term resistance level is at 1.7492, around 250 pips above the current market action, so on both sides we have good possibilities.
Here is my trading plan:
If the market breaks the short term range for the upside (and continues to trade above 1.7266), I will look for long opportunities. The next LT resistance level is located at 1.7492.
If the market breaks the short term range for the downside (and continues to trade below 1.7186), I will look for short trading opportunities. The next LT support level is located at 1.6719.