The 3-hour chart(image 1) of GBP/CHF seems to be in a sideways consolidation mode after a long downside move.
It has been in range bound movement for the past 1 month and a strong bullish engulfing candle has formed at the lower end of the support which is a very good sign that bulls have taken control.
Coincidentally, this strong support zone meets the long term trendline in the Daily chart (image 2).
The pair is also trading close to its 200 day moving average.
So if the 3-hour chart gives a break out from the consolidation zone,it becomes a valid double bottom pattern.
Taking all these factors into consideration,we expect the pair to give a bullish break out and its long term bull run to continue.
It has been in range bound movement for the past 1 month and a strong bullish engulfing candle has formed at the lower end of the support which is a very good sign that bulls have taken control.
Coincidentally, this strong support zone meets the long term trendline in the Daily chart (image 2).
The pair is also trading close to its 200 day moving average.
So if the 3-hour chart gives a break out from the consolidation zone,it becomes a valid double bottom pattern.
Taking all these factors into consideration,we expect the pair to give a bullish break out and its long term bull run to continue.