From a technical perspective we will have downside confirmation on the daily only once GBPCHF will have broken the aforementioned pattern, because in reality it could go for one (or more) movements to the upside in said formation, as you can see in the example in our chart.
However, we believe that there is a chance it could drop right now, as the pair, as already mentioned, has been consolidating around the lower of the diagonal for quite a while now, so we have to be ready, as the movement could be quite impulsive and therefore happen abruptly and very fast. For said reason, so we are looking to add sell positions already from minor patterns that are forming in the smaller timeframes (please refer to our smaller timeframes analyses for these).
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Remember that you can double check the bigger structures that are at play are on the weekly and daily time frames also by scrolling around the charts in the lower 4hr and 60min timeframes (right and left, up and down).
Trade with care and only with a backtested strategy that has proven to work in relation to your invested capital, risk appetite and potential small losses you might incur in before profiting from a good trade.
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