GBP/CHF Daily Price Forecast – 9th May 2025

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Trade Summary:

GBPCHF
Buy Stop @ 1.10355
TP @ 1.10689
SL @ 1.09807

GBP/CHF Technical Analysis

Chart Overview

The chart provided is a 4-hour (H4) timeframe for the GBP/CHF currency pair. Key levels and indicators are marked, including:

• Buy Stop: 1.10355

• Take Profit (TP): 1.10689

• Stop Loss (SL): 1.09807

• Moving Averages:

  • Yellow line: Likely a short-term moving average (e.g., 50-period MA).

  • Red line: Likely a longer-term moving average (e.g., 200-period MA).

Key Observations

• Trend Analysis:

  • The price is trading above the yellow moving average, indicating short-term bullish momentum.

  • The red moving average is below the current price, suggesting that the longer-term trend may also be shifting bullish.

• Support and Resistance Levels:

  • Support: The Stop Loss level at 1.09807 acts as a key support zone. This level has been strategically placed below recent lows to minimize risk.

  • Resistance: The Take Profit level at 1.10689 represents a significant resistance zone. This level aligns with previous highs, making it a logical target for profit-taking.

• Entry Strategy:

  • A Buy Stop order is placed at 1.10355, slightly above the current price. This indicates a breakout strategy, where the trade will be triggered only if the price breaks above this level, confirming bullish momentum.

• Risk-Reward Ratio:

  • Risk: The difference between the Buy Stop (1.10355) and Stop Loss (1.09807) is 54 pips.

  • Reward: The difference between the Take Profit (1.10689) and Buy Stop (1.10355) is 34 pips.

  • The risk-reward ratio is approximately 1.6:1, which is acceptable but slightly aggressive.

• Candlestick Patterns:

  • The recent candlesticks show consolidation, with alternating bullish and bearish candles. This suggests indecision in the market, but the breakout above 1.10355 could confirm a bullish continuation.

• Moving Averages Crossover:

  • The yellow moving average is above the red moving average, indicating a potential bullish crossover. This is a positive signal for buyers.

Potential Scenarios

• Bullish Breakout:

  • If the price breaks above 1.10355, it is likely to test the Take Profit level at 1.10689. This scenario aligns with the current setup and moving average signals.

• Bearish Reversal:

  • If the price fails to break above 1.10355 and reverses, it could test the Stop Loss level at 1.09807. A break below this level would invalidate the bullish setup.

Conclusion

The GBP/CHF pair is showing signs of bullish momentum, supported by moving averages and a breakout strategy. Traders should monitor the 1.10355 level closely for confirmation of a breakout. The risk-reward ratio is slightly aggressive, so proper position sizing and risk management are essential.

Recommended Lot Size

Trading is all about statistics.

While we can experience winning streaks, we can also suffer from losing streaks.

As such, we should always size each trade to withstand losing streaks (if any).

It's widely recommended that you should not risk more than 2% of your capital for each trade.

We believe it's easier to control your lot size by limiting your lot sizing to 0.01 for every $500 in your account.

So if you have $5000, then risk no more than 0.10 lot size per trade.

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If you spot a mistake especially when it comes to the price, please use common sense and check the chart.

We wish you good luck and good profit for this trade idea.

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