From Investor to Scalper is a cycle of analysis in which we take one financial instrument and the analysis includes a detailed look at the value from the monthly/weekly chart to the H1/M15.
GBPCHF due to ongoing from December 2015 declines in October 2016, once again reached level 1,1900, where in the whole history of this instrument was only once (then for the second time).
There, in November, occurred a demand reaction, which indicated potential growth, but nevertheless the exchange rate still moves in a narrow consolidation.
Looking on the weekly chart, we notice that the price currently moves around 1.34, where in December the first supply reaction appeared. Permanent rejection of this resistance could open the way to declines.
The recent defeat of the upward trend line may also speak for the scenario. Currently, we re-test it from the bottom (as resistance) and there is already a supply reaction in its vicinity.
The decline is also supported by the fact that today the market tested this year’s maximum, where supply reaction has already appeared.