After the wild swings we saw last Friday because of the NFP announcement, there are some good opportunities this week, one of those is the GBPCHF:
It is trading in a bearish market condition, just below the LT support level and below the ST range, meaning that only short opportunities are in play in the GBPCHF. We have plenty of room before it hits the next LT support level.
As long as the GBPCHF trades below 1.6745 I will be looking for short opportunities.
Interesting isn’t it? The GBPCHF is trading in a very well defined long term range, if you look at this in the weekly chart you’ll see it even clearer. What caught my attention though is the downward pressure present just at the top of the range. Right now we are already in a bearish market condition and I will be looking for short trade opportunities (until we hit the next LT level, but why not, I would be willing to hold my trade for the bottom of the range if there is enough momentum, it could take a while though… see how many days it took the GBPCHF to go from bottom to top?).
The GBPCHF traded near a long term support level (it even broke that level and traded in a bearish market condition for a few hours, but it is back now) for a few days but today it broke that range for the upside triggering a bullish market condition:
Now it is in a clear bullish market condition and there are quite a few pips before the market hits the next LT lvl.
My Trading Plan:
As long as the GBPCHF trades 1.6516 I will be looking for long opportunities.
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.
The GBPCHF traded in a range in the last 4 or 5 sessions, near a long term resistance level. This means that the GBPCHF was making up its mind on the direction it would take in the following days or so.
But recently the pound-swiss broke is long term resistance level and now it is trading in a bullish market condition, meaning we’ll only take long trade opportunities. Also, the next LT resistance level is at 1.7159, so we still have a long way to go before we hit the next resistance level.
My Trading Plan
As long as the market keeps trading above 1.6667 I will be looking for long trading opportunities. All TP orders will be placed below the next long term resistance level around 1.7159.
Even though today is a holiday in the US and Canada, and the volume is expected to drop down, we still have a few opportunities today, and one of them might be the GBPCHF. Just broke the long term support level and it will probably head down to the next LT support level:
It has clearly broken the long term support level at 1.6290
My Trading Plan:
As long as the GBPCHF continues to trade below 1.6238 I will be looking for short trading opportunities. All take profit orders will be placed above the next LT support level around 1.5906
Last week, the GBPCHF was in a bearish market condition, we shorted the GBPCHF and it hit the TP order. But now what? It stopped at the long term support level. Please take a look at the next chart:
Now need to wait for the GBPCHF to either, break that LT support level or bounce back from it. In order to see what is more likely to happen, I recommend you to take a close look to the short term charts.
My Trading Plan:
Wait for the GBPCHF to give further confirmation about its market condition.