The GBPCHF has corrected for several weeks now and formed a bearish price channel as visible in this H4 chart. The last few sessions saw this pair searching for support around its declining support level. This pair has not been able to breakout of its bearish price channel and we expect any rally to be limited to its declining resistance level.
MACD has remained bearish and confirmed the downtrend, but has improved slightly which suggests a minor rally before the downtrend can resume. RSI has reached oversold territory and is close to a breakout from this territory which would add to the rally.
We recommend taking a long position at 1.4883 with a potential second entry level at 1.4800. Should this pair breach 1.4833 to the downside we advise placing a short position in order to hedge the initial long before adding new long positions to this trade.
Traders who wish to exit this pair at a loss are advised to place their stop loss level at 1.4833. We do not use stop loss levels and we will execute this trade as mentioned above. Place your take profit level at 1.4933.
