GBPCHF - Trade idea for shorter term GBP weakness
Due to Brexit drama, GBP has given us great technical and fundamental trade ideas.
Fundamentally, EU & UK - As normal aren't agreeing on much and we are cutting it fine on timing as the date of 15th October approaches near... Boris had announced perhaps a no deal Brexit wouldn't be as bad...Questionable thought it is...! But they could do a deal last minute, never know!
Important Fundamentals for today - ECB meeting on refinancing Rates, Policy statement and lastly the press conference.
Technical terms of GBP/CHF :
Pattern: Broke out of larger triangle formation but within that we have a bearish flag formed. I'd like to see a pull back 1.19450 area - RED dotted line - if goes above the green I'd re-think this trade plan and that's why the pull back is key I want to see what the reaction is - questioning my approach - are the bears fully in control?
As well as that the support and resistance areas combined with Fib retracement with length of the bear flag measured it would take us towards the support areas of: 1.16600
Be aware of the boxes drawn in purple areas, we've been within these ranges for a while, we could approach 1.17250 and continue the trend towards the upside, be aware of of the range! And if we do go above those levels, we could even form inverse H&S - head and shoulders...I will revisit this trade idea in few weeks time for further updates. Keep an eye on the 50 EMA.
This is a shorter term trade approach and a counter trend trade.
Remember: Just a trade idea, not a recommendation.
Have a great day ahead,
Trade Journal
Fundamentally, EU & UK - As normal aren't agreeing on much and we are cutting it fine on timing as the date of 15th October approaches near... Boris had announced perhaps a no deal Brexit wouldn't be as bad...Questionable thought it is...! But they could do a deal last minute, never know!
Important Fundamentals for today - ECB meeting on refinancing Rates, Policy statement and lastly the press conference.
Technical terms of GBP/CHF :
Pattern: Broke out of larger triangle formation but within that we have a bearish flag formed. I'd like to see a pull back 1.19450 area - RED dotted line - if goes above the green I'd re-think this trade plan and that's why the pull back is key I want to see what the reaction is - questioning my approach - are the bears fully in control?
As well as that the support and resistance areas combined with Fib retracement with length of the bear flag measured it would take us towards the support areas of: 1.16600
Be aware of the boxes drawn in purple areas, we've been within these ranges for a while, we could approach 1.17250 and continue the trend towards the upside, be aware of of the range! And if we do go above those levels, we could even form inverse H&S - head and shoulders...I will revisit this trade idea in few weeks time for further updates. Keep an eye on the 50 EMA.
This is a shorter term trade approach and a counter trend trade.
Remember: Just a trade idea, not a recommendation.
Have a great day ahead,
Trade Journal
Comment:
Continuing analysis of this pair - Pound may decline further due to Brexit deadline, perhaps negative interest rates and further lock down as covid cases rise.