The pair of the British pound with the Swiss franc reached a maximum at 1.3070 in April this year.
- price breaks through the triangle support
- bull market on the H4 chart
The high was followed by sharp declines for several days, which brought the price down to the area of 1.2620 which is 250p lower. Since then, the price has oscillated around this level, rising or falling below around 170p. This consolidation movement lasted until mid-August.
In the last two and a half months, the price made shorter and shorter swings and as a result, it formed a triangle formation from which it broke out sharply from the bottom yesterday.
Today on the H4 chart a bullish engulfing pattern appeared, which the price has already left by beating the maximum of the mother candle forming the above mentioned pattern.
The MACD oscillator entered an upward phase. The upward movement is likely to continue. The target may be the triangle support that was defeated yesterday.
When planning an order on this pair, it is important to take into account the important economic event – Thursday’s Bank of England meeting. The decisions that will be made there may cause high volatility in GBP and its currency pairs.
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I also recommend a description of the strategy used for this analysis:PA+MACD
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Today – Tuesday, 2nd of November 15:00 GMT – live trading session here: https://www.xm.com/live-player/basic
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