This morning we are looking at a buying opportunity for GBPCHF, our trader Ollie has taken a look at why this could be a potential set up.
After 9 months of selling, price finally broke above the descending trend line printing a huge bullish engulfing candle and closed above the 50ma with force. You can see that price came back down to test the supply zone and support of 1.2920 before shooting higher again.
Now looking to complete the ABCD Fib movement with multiple confluences building a strong case to take this higher. We can see that we had a heavy rejection from our supply zone creating a double bottom reversal at 1.2929. Price has now broken above the descending trend line and I will be monitoring the lower time frames for an entry.
As you can see our 20 & 50 MA’s have crossed confirming a change in direction. Let’s see how price reacts to the soft level of support/resistance at 1.3118. Ideally we want price to pullback a little to the 20MA before entering LONG.