has corrected after it reached a new high and the decline was halted by its support zone
as visible in this H4 chart. This pair should start a rally which may be limited to its 200 DMA
. The GBPCHF may correct slightly lower until it forms a double bottom
indicates bearishness, but has reached a temporary bottom from where it should improve alongside the rally. RSI
has been trading in oversold
territory and a breakout should fuel the rally.
We recommend a long position at 1.4760 with a potential second entry point at 1.4660. Should this pair breakdown below 1.4690 we recommend traders to hedge their initial position before adding new long trades.
Traders who wish to exit their trade at a loss are advised to place their stop loss level at 1.4690. We do not use stop loss level and will execute this trade as recommended. Place your take profit level at 1.4810.