The pair of the British pound with the Swiss franc (GBPCHF) has been moving in a downtrend since April this year. In September and October, the quotations moved in a consolidation, which took the shape of a symmetrical triangle. The bottom breakout from the triangle at the beginning of November confirmed the bearish mood on the pair.
- bullish engulfing on the daily chart
- an upward divergence on MACD
After the re-retest of the defeated triangle support, the declines continued.
Yesterday’s daily candle formed a bullish engulfing pattern.
A bullish upward divergence appeared on the MACD. This forecasts the start of an upward correction.
On the hourly chart we can tentatively determine the range of the first upward impulse – it will probably be the nearest supply zone of 1.2336.
The level of 1.2216 is a local S/R level – support and resistance, it is the best possible moment to enter long positions… as long as the market goes back to this area. Buy positions will be protected by a stop loss below 1.2210.
I recommend a description of the strategy used for this analysis:PA+MACD
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