Swiss Franc showed strong momentum and dragged Great Britian Pound with it towards 50% fibb retracement level i.e 1.2441, entering into the oversold conditions on four hour chart but retaliated from doing the same on daily time frame and took a bullish reversal from the aforementioned support zone. In our previous analysis published on 20th Aug, we portrayed sentiments of neutrality based on multiple sides of the story, firstly daily time frame GBPCHF was standing above exponential moving average 200 with high supply and demand zone, relative strength index had left bearish footprints but the MACD on other hand was trying to undo the dovish scenario and put some fuel to the bulls for a hawkish reversal from the current market price. Great Britian Pound versus Swiss Franc had moved a bit below our 61.8% fibb retracement level which provided us with an indication that the pair might have its next stop at 50% fibb incase we got a  bearish closing below the aforementioned level and thats exactly what happended. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Technically GBPCHF is slightly standing above exponential moving average 200 and 61.8% fibb level while the bearish momentum in MACD has forced the pair on staying below rest of the interday and intraday exponential moving averages i.e 8,13,21 and specially EMA50 right at our upper trend line i.e 1.26406. GBPCHF might provide us with a heads up towards the aforementioned price zone and if proceeded by a bearish impulsive closing below would lead the market lower creating lower low at 1.2294 i.e 38.2% fibb level. In rare case scenario if GBPCHF rallied above our upper trend line and gave us a closing above the ichimoku cloud then our next stop would be most definitely 1.28463. 

GBPCHF

Aug 27 2021

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