Time Zone: GMT +3
Time Frame: 4 Hours (H4)
Fundamental Analysis:
Recent news includes key economic indicators from both the UK and Switzerland that could significantly impact the GBP/CHF exchange rate. On June 17th, the UK will release the Rightmove HPI m/m, with a forecast of 0.8%, while the Swiss PPI m/m is already published at -0.3%, against a forecast of 0.5% and a previous figure of 0.6%. These economic indicators are crucial as they provide insights into the economic health of the UK and Switzerland, influencing the strength of the GBP and CHF, and consequently affecting the GBP/CHF currency pair.
Price Action:
The GBP/CHF H4 chart currently shows the price testing a critical support zone after a significant bearish wave and subsequent correction phase. Candlestick formations on this pair around this support zone suggest that the bearish momentum might be resuming, indicating a possible break below the previous support level. Traders should watch for confirmation of this support breaking to anticipate the next bearish move.
Key Technical Indicators:
Williams R%: The Williams % Range on GBP/CHF is showing bearish conditions, hovering in the oversold territory. This indicates that the pair might be due for a further bearish movement or consolidation before any potential pullback.
MACD: The Moving Average Convergence Divergence (MACD) for this forex pair displays bearish signals, with the histogram below the zero line and the MACD line below the signal line, confirming ongoing bearish momentum.
Support and Resistance:
Support Levels: The previous support zone around 1.22800 is now the immediate support level.
Resistance Levels:The upper boundary of the former bearish channel around 1.23850 serves as the resistance level.
Conclusion and Consideration:
Traders should closely monitor the upcoming economic news and the GBP/CHF reaction at the 1.22800 support level. A failure to hold this level could confirm the continuation of the bearish trend, potentially presenting short opportunities. Conversely, a strong rebound above this support could negate the bearish outlook. Given these dynamics, it is essential to stay updated with the latest economic reports and adjust trading strategies accordingly to navigate the volatile forex market effectively.
Disclaimer: The provided analysis is for informational purposes only and does not constitute investment advice. Traders should conduct their own research and analysis before making any trading decisions.
