GBPCHF Top-Down AnalysisHello Traders,
Here is the Top-Down Analysis of GBPCHF (Monthly, Weekly, Daily for direction and 4H for entry) for
Week 43 - 19 Oct
M > Price dropped till monthly support level that has pushed market to the upside in past.
W > Price moved up to test the neck of M and complete the formation.
D > We saw an M formation in Daily Chart providing us next bullish target but for more than 2 weeks price is not able to break daily resistance. This resistance was created by demand zone 2 during last bullish impulse, price is now stuck at demand zone 1 created during same bullish impulse.
As per COT GBP saw closure of both Long and Short positions improving net positions but still in -ve, whereas N-R could not gauge the same path and they went opposite with addition of both Long and Short. Commercials closed both Long and Short positions, Short for them reducing further to least for current year. BXY had further improved its position during the said week but it weakened last week. CHF saw closure of few Long and addition of Short positions, reducing net positions whereas N-R saw addition of both Long and Short positions increasing cumulative net positions. SXY further improved its position during the said week. However SXY weakened last week.
4H > We expect this consolidation to continue for a while in current range of about 100 pips or price can drop down to test last HL.
Pair Correlation: GBPCHF has positive correlation with GBPUSD, GBPJPY and GBPCAD and negative correlation with EURGBP.
This was my Idea and I hope you find it useful. If you find the analysis of help please leave a LIKE and FOLLOW for receiving all updates during the week. In the comment section share your view or ask questions.
Thank You
AP17FX
