Tuesday, May 19, 2020

Bullish Setup On GBPCHF

Marco Tosoni

FХ Strategist & Financial Commentator

After a sharp falling swing and the test of the previous 2016 support nearby 1.12 area, a strong bullish rally started, culminating with a double top around 1.2200. While during the first part of the month of May, this pair has set a new bearish movement with the quotes that fell towards 1.1750 area, around the bottom zone set on July 2019.

During yesterday’s session by the way, the Pound has showed a first bounce forming a marubozu candle with a daily closure around 1.1830 area.

Looking at the RSI indicator, we can detect a bullish setup that combined with the test of the important support area around 1.1750 should anticipate a further rise of this pair. On the other hand, the Average True Range, after the comeback towards its typical values, is currently rising and this element is a further confirmation of a next rise of the pound, at least for the short term.
The bullish setup would be activated in case of a comeback towards 1.1950 area above the tops of the last 3 sessions, with a stop loss to place at 1.1700 below yesterday’s bottom. While the target price could be expected at 1.2200 around the double top set in the end of April.

As always I recommend to trade carefully and to plan at best every move. Don’t forget to subscribe to NBHM YouTube Channel to stay up to date with the financial markets! Have a good trading and see you for the next video.

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