{"id":120556,"date":"2018-01-29T10:45:47","date_gmt":"2018-01-29T15:45:47","guid":{"rendered":"http:\/\/countingpips.com\/?p=120556"},"modified":"2018-06-01T15:43:48","modified_gmt":"2018-06-01T15:43:48","slug":"short-term-trading-idea-fx-gbpchf-looking-down-awaiting-confirmation-of-a-double-top","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/01\/short-term-trading-idea-fx-gbpchf-looking-down-awaiting-confirmation-of-a-double-top\/","title":{"rendered":"Short-term trading idea FX GBPCHF \u2013 looking down: awaiting confirmation of a double top"},"content":{"rendered":"
January 29, 2018<\/div>
\r\n<\/div><\/div>

By Gabriel Ojimadu, Alpari<\/strong><\/p>\n

Trading opportunities on the currency pair:\u00a0<\/em><\/strong>last week, this cross declined by 293 pips to reach 1.3199. This resulted in a double top formation, which will be confirmed should the pair drop below 1.3132. My forecast has the price breaking out of the B-B channel downwards, followed by a further drop to 1.2856 (50.0% of the growth from 1.2220 to 1.3492).<\/em><\/p>\n

Current situation<\/em><\/strong><\/p>\n

In my\u00a0review on the EURCHF pair<\/a>, I looked back at the SNB\u2019s decision at the beginning of 2015 to abandon the cap on the EURCHF rate and lower the deposit rate to -0.75%. The pair dropped sharply by 19.6% in response to this, while the GBPCHF pair dropped by 18.8% to hit 1.2611. Since the SNB\u2019s cap related only to the euro, the pound recovered its losses in the space of 10 months. However, after the Brexit vote, the pair dropped to hit a new low of 1.1784.<\/p>\n

\"\"<\/p>\n

Fig 1. EURGBP monthly chart. Source: TradingView<\/p>\n

On the monthly timeframe, the GBPCHF pair has seen a 45% correction of the downwards movement from 1.5572 to 1.1784. The price is trading within the A-A channel. December\u2019s candlestick closed down. This month, buyers tried to break through 1.35, but were blown off course by the retreat to safe haven assets and the dollar\u2019s decline. In the end they only managed to get as far as 1.3209. This can happen; the franc is that kind of asset. The month isn\u2019t over yet, but the wicks on the daily timeframe over the last 2 months have created a double top formation that is worth our attention.<\/p>

\r\n
\r\n

Free Reports:<\/p><\/div>\r\n

\r\n

<\/a>\r\n\t Get Our Free Metatrader 4 Indicators<\/u><\/b><\/a> - Put Our Free MetaTrader 4 Custom Indicators on your charts when you join our Weekly Newsletter<\/p>

\r\n
\r\n
\r\n

<\/a>\r\n\t Get our Weekly Commitment of Traders Reports<\/u><\/b><\/a> - See where the biggest traders (Hedge Funds and Commercial Hedgers) are positioned in the futures markets on a weekly basis.<\/p>

\r\n<\/div>\r\n

\r\n
<\/div>\n

\"\"<\/p>\n

Fig 2. GBPCHF weekly chart. Source: TradingView<\/p>\n

Buyers have thrice attempted to break out of the A-A channel to no avail. Trading on the pound against the franc closed down last week. The rate dropped from 1.3492 to 1.3199 (-293 pips). This has created a double top formation. This formation will receive confirmation once the rate drops below 1.3132. My forecast has the pair exiting the B-B channel with a subsequent drop to 1.2856 (50.0% of the growth from 1.2220 to 1.3492).<\/p>\n

Source: “Short-term trading idea FX GBPCHF \u2013 looking down: awaiting confirmation of a double top<\/a>“<\/div>\n","protected":false},"excerpt":{"rendered":"

By Gabriel Ojimadu, Alpari Trading opportunities on the currency pair:\u00a0last week, this cross declined by 293 pips to reach 1.3199. This resulted in a double top formation, which will be confirmed should the pair drop below 1.3132. My forecast has the price breaking out of the B-B channel downwards, followed by a further drop to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-120556","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120556","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=120556"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120556\/revisions"}],"predecessor-version":[{"id":120557,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/120556\/revisions\/120557"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=120556"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=120556"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=120556"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}