Is the triangle going to break?
Updated
Hey traders,
let me start explaining my thoughts beginning from the long-term space, where I've noticed a nice and clean triangular pattern in an ABCDE formation. In the short-term, GBP is losing ground against the previous week's strong CHF, and we see much bearish momentum, which could easily mean an invalidation of the ABCDE pattern and further downturn.
According to the triangle pattern formed, price is supposed to break to the upside after the end of the E wave. Although we're not sure enough the D wave is actually the D wave because we didn't see any clear touch of the shape. However I still chose to stick with this pattern as long-term guidance.
So my call for the week coming is to wait. There is no fogless path in the way of our pair. Buyers and sellers will p r o b a b l y be conservative this week, because COVID news are expected from all countries, and since we're in a risk-off environment right now, it is very logical that CHF will be bought (as well as JPY but we don't care about it now haha).
Technicals tend to fail to give us good insight of the markets recently, since fundamentals drive the world markets lately. So that's why we can't say that GBPCHF is bullish or bearish at this point. We still have to have the patience needed if we want to be profitable during these hard times.
Impatient long-term traders are going to get crushed once again, so stay safe and happy trading to you all! :)
let me start explaining my thoughts beginning from the long-term space, where I've noticed a nice and clean triangular pattern in an ABCDE formation. In the short-term, GBP is losing ground against the previous week's strong CHF, and we see much bearish momentum, which could easily mean an invalidation of the ABCDE pattern and further downturn.
According to the triangle pattern formed, price is supposed to break to the upside after the end of the E wave. Although we're not sure enough the D wave is actually the D wave because we didn't see any clear touch of the shape. However I still chose to stick with this pattern as long-term guidance.
So my call for the week coming is to wait. There is no fogless path in the way of our pair. Buyers and sellers will p r o b a b l y be conservative this week, because COVID news are expected from all countries, and since we're in a risk-off environment right now, it is very logical that CHF will be bought (as well as JPY but we don't care about it now haha).
Technicals tend to fail to give us good insight of the markets recently, since fundamentals drive the world markets lately. So that's why we can't say that GBPCHF is bullish or bearish at this point. We still have to have the patience needed if we want to be profitable during these hard times.
Impatient long-term traders are going to get crushed once again, so stay safe and happy trading to you all! :)
Note
GBPCHF took off on the London session opening and it seems it will continue like this till it finally arrives to its destination which is the dynamic resistance of the chartNote
We're on the resistance. Eyes open for the breakout o-o
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