Friday 27 April 2012

GBPCHF short ready for the watchlist?

Ever since GBPCHF reached the 14755 level, which remains unbroken in over a year - it has been one which I have been stalking...and as they days have gone by, it just looks better and better for a short.But it is not quite ready yet, alas.


For the trade
If GBPCHF closes as a high test bar this evening (the formation seen in the last bar on screenshot below) off the level of resistance which has not been broken in over a year – probability will be to the downside.  The fact that it is bouncing off the monthly R2 level (a hidden level of resistance) is another clue to a potential move to the downside.

Against the trade
However, against the trade, we have the fact that the hourly timeframe does not give us a lower high (we have no idea whether the shorter term buyers/market are ‘singing from the same hymn sheet’ until we get clue like a lower high and thus a sign that momentum up into the level is starting to wane). 

GBPCHF


 This is where trading can sometimes be like two politicians arguing on a TV debate - the most convincing one may seem to the casual observer, the most resulting chain of events may be.

What do you think?

5 comments:

  1. as seen on GBP/CAD before,It looks A good time to keep an eye on all time frames weekly,daily,hrly. by the your presentation of mid week market is realy interesting.keep it up.
    thanks
    Mesfin

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  3. Now we have a doji on daily and H&S forming on hourly. But what woul be target?

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    1. I dont like the way it didnt close as a HTB to be honest mate - I would probably trade the break of the low...will set out a mailshot on Sunday

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