Bearish Signals on 4H GBP/CHF

MACD and Signal Line Down-Cross
The Moving Average Convergence Divergence (MACD) indicator is nearing a down-cross of its signal line. This is traditionally seen as a bearish signal, suggesting that downward momentum is increasing, and traders might anticipate a potential decline in the GBP/CHF pair. The MACD measures the momentum by comparing two moving averages of the price, and a cross below the signal line can indicate that it's a good time to consider short positions.

Higher-Highs with Descending CCI
There are two occurrences of two consecutive candles forming higher highs, a bullish signal, but this is contrasted with the Commodity Channel Index (CCI) descending during the same four-candle period. The CCI is used to identify overbought and oversold levels. A descending CCI during a period of price increase can indicate weakening momentum in the upward move and might suggest a reversal or pullback is on the horizon, especially if the CCI moves from above 100 to below it, indicating the end of overbought conditions.

Resistance Levels and Bounces
The GBP/CHF price action showing a bounce off the weekly pivot's resistance level R1 and the upper band of the Bollinger Band (coinciding at R1) further supports the case for a potential reversal. The resistance level R1 acts as a ceiling that price struggles to break through, and the Bollinger Bands are used to measure volatility and overbought or oversold conditions. A price rejecting off the upper Bollinger Band typically suggests that the asset is overbought, and a retracement could be imminent.

Towards the Weekly Pivot
Considering the confluence of bearish signals—MACD down-cross, divergent CCI during higher highs, and significant resistance at R1 coinciding with the upper Bollinger Band—there's a strong case that the price might retreat towards the weekly pivot level at 1.13357. This level acts as a gravitational center for the price and could serve as the next target for a downward move.

In summary, the GBP/CHF 4-hour chart analysis points to a possible retracement from current levels with the weekly pivot at 1.13357 as a plausible short-term target. As always, while technical analysis can provide guidance, it's crucial to consider other factors such as market news, economic indicators, and broader market sentiment before making trading decisions.

Dagangan aktif:

price made huge moves in the predicted direction ...
To play it safe - you could get out of the trade right now and make plenty of pips.
But I still believe, that price will hit the pivot point