GBPCHF 05.03.2019 – Bearish

GBPCHF Daily – divergence and bearish engulfing predict declines

GBPCHF has been in an upward trend since the beginning of the year. Last week, the pair set a maximum at 1.3330. Today’s daily candle covered Friday’s range, creating the Outside Bar –Bearish Engulfing, which, located close to the last high, according to the PA+MACD strategy, may be a sign of further declines. The downturn scenario is also supported by the divergence on MACD, which already appeared on Friday on the daily chart. A confirmed breakout from the OB may be a signal to continue the falls initiated last week.

GBPCHF H4 – in case of declines the target for bears can be the supply zone 1.3030

Looking at chart H4 we can indicate that the nearest demand zone 1.3030 may be the target of supply. Possible (in my opinion much less probable) breakout at the top of the OB will negate the downward scenario.

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