From Investor to Scalper – series of studies created in cooperation with broker BDSwiss, in which we take a financial instrument and the analysis includes a detailed look at the value from the monthly chart and ending with H4/H1.
GBPCHF as a result of lasting since December 2015 declines, in October last year, once again found itself in area of 1.1900, where in the entire history of this instrument was only once (now for the second time).
There was a demand response in November, which indicated growth in near future.
Looking at weekly chart, we note that later gains reached local resistance zone, where supply reaction occurred in the beginning of May.
On daily chart, we notice that for a long time market has been drawing a triangle formation from which it broke up. However, if recent declines lasting for almost a month will be continued we expect market to test again level around 1.2215. It is worth noting that there is a possibility of a bullish correction and retesting local resistance zone between 38.2% and 50% Fibo.
Looking at H4 chart, we are able to refine this zone to a specific level of 1.2675. It is worth noting that first supply reaction can occur a little earlier, in area of local resistance zone and 1.2560 level.
On H1 chart market is once again testing downward trend line, which could open the way for further gains even in a slightly longer (than intraday) term.
However, if this level once again stops buyers from further growth, the whole pro-growth scenario could be negated or at least postponed.