GBPCHF is in a downward trend, with lows around 1.1710. Price action in May indicates that market is under bears control, while in June a small bullish bar was formed, which indicates indecision.
Weekly chart shows the above mentioned downward trend as well as correction of this trend. In the beginning of June trend line drawn on correction lows was broken and since then price is staying below that line, which now provides a resistance.
In addition we have resistance supported by downward trend line and intersection of these two lines gives confluence of resistance. Support is visible here at level 1.2235 and it is only after the breakdown that you can expect return to declines.
Looking on H4 chart, we have a bullish channel in front of our eyes. Currently market is around the upper limit of this channel. Looking at the consolidation that lasts currently, it is quite possible that once we brake level 1.2435 market will head towards channel’s support. Setting new highs negates this bearish scenario, at least for a while.
The above consolidation is clearly visible on M15 chart. Price is trapped between resistance 1.2510 and support at 1.2435. Breaking support and today’s minima will cause further declines. Alternatively, in the event of a rebound the buyers will have to face resistance zone at 1.2510 and the channel line from the H4 chart.
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