GBPCHF- Bearish Continuation TrendKey Analysis Elements:
1- Resistance Zone:
2- The chart now identifies the previously marked support zone as Resistance. This suggests that the price has broken below that level, and it's expected to act as resistance if the price retraces back up.
Buy Limit:
3- The Sell Limit remains around the same level at 1.0974. The strategy anticipates the price dipping to this region before possibly bouncing back for a short-term correction. This means the trader is looking to capitalize on the potential rejection from this level.
Stop Loss:
4- The Stop Loss is slightly above resistance at 1.1122, indicating a protective measure in case the price breaks above the resistance level. If it does, the bearish outlook would be invalidated.
Take Profit:
5- The Take Profit is marked at 1.0968, suggesting a potential downside move. This setup aligns with the expectation that the price will dip after hitting the buy limit area.
Price Projection:
6- The white curved line on the chart projects the price bouncing from the buy limit zone and potentially reaching the take profit level.
The move suggests a short-term retracement within the overall downtrend.
Additional Insights:
8- Risk Management: The stop loss is strategically placed above the resistance zone to protect against false breakouts, while the take profit is set close to the support zone, indicating a short-term trade.
9- Trade Setup: This setup anticipates the price respecting the identified resistance zone. Should the price reject this resistance, the trade could be triggered near the buy limit, expecting a bearish continuation.
