GBPCHF had a bearish day yesterday. The daily candle engulfed day before yesterday’s daily candle. Moreover, the H4 chart produced a double top and made a breakout at the neckline. All these equations favor the sellers. Today’s second H4 candle has come out as a bearish engulfing candle as well. If the price keeps coming down and makes a breakout at yesterday’s lowest low, the sellers may find an opportunity to go short on the pair later today. Have a look at the H4 GBPCHF chart. This trade idea was generated by our powerful Elite Swing Trader System.

The chart shows that the price had rejection from a level three times. The level of 1.19620 shall be considered as the neckline if we wipe out those spikes. The price after making a breakout has been having a consolidation. If an H4 candle makes a breakout at the level of 1.19245 and makes an upside correction, then an H1 bearish engulfing candle right at the  breakout level would be the signal to go short on the pair. Let us have a look at the summary of the trade...

• Entry: H1 bearish engulfing candle at the level of 1.19245
• Stop Loss: Above 1.19620
• Take Profit: 1.18255

All the GBP pairs look to be bearish. The GBP seems to be losing its strength. Against the USD, it may drop down to the South in big time frames such as the Weekly and Monthly. The next two/three weeks are very crucial. If those weeks remain bearish, then the GBP may remain bearish for some months. For more trade ideas, join the Price Action Society... If you like our analysis and would like to receive 3 to 7 trade ideas per day, then click here to learn more about Price Action Society.