The GBPCHF is trading around an important long term resistance level at 1.6698. If we take a look at the short term charts, we’ll notice the short term range the GBPCHF needs to break in order to start looking for a trade opportunity:
Once the market leaves that range, we’ll be ready to start looking for a trade, but first we need to make sure it is out of that range.
Here is my trading plan:
If the GBPCHF breaks through the short term resistance level and keeps trading above that level, I’ll start looking for a long trade opportunity. My next LT resistance level is at 1.6932.
If the GBPCHF breaks through the short term support level and keeps trading below that level, I’ll start looking for a short trade opportunity. My next LT support level is at 1.6490.
If the market keeps trading in between the short term range I will do nothing.