Sell GBP/CHF Channel Breakout

Mar 7, 2024

The GBP/CHF pair on the M30 timeframe presents a potential selling opportunity due to a recent downward breakout from a well-defined bearish channel pattern. This suggests a shift in momentum towards the downside and a higher likelihood of further declines in the coming minutes or hours.

Key Points:

Sell Entry: Consider entering a short position around the current price of 1.1222, positioned close to the breakout level. This offers an entry point near the perceived shift in momentum.

Target Levels: Initial bearish targets lie at the previous support levels within the channel, now acting as potential resistance zones: 1.1151 and 1.1108. Further downside targets could be determined using other technical analysis methods like Fibonacci retracements or extensions.

Stop-Loss: To manage risk, place a stop-loss order above the broken support line of the channel, ideally around 1.1252. This helps limit potential losses if the price unexpectedly reverses and breaks back upwards.

Thank you

Mar 7, 2024

Trade active

Stronger CHF: The Swiss Franc (CHF) has been strengthening recently due to its safe-haven status amid ongoing geopolitical tensions and concerns about a global economic slowdown. This could put downward pressure on GBP/CHF.

Weak UK Data: Recent data releases from the UK, including the confirmation of a technical recession and weaker-than-expected retail sales figures, continue to raise concerns about the UK economy. This could weaken the Pound Sterling (GBP).