H4 : As expected, on the GBP/CHF market a consolidation began after a continuous decline. During yesterday’s trading session the bulls tried to recover the rate and the pair advanced to the 4-hour Rotation line (3) which is directed horizontally at the moment. The price tested the 1.3365 level.
All Indicator lines (1, 2, 3, 4) are parallel to the time axis and indicate sideways movement.
Nevertheless, in the long term bearish sentiment remains on the market: the Ichimoku Cloud still has a downside character. Therefore in the nearest time another bearish attack and an attempt to refresh the low are possible.
H1 : In 1-hour graphs the trading is located below the Ichimoku Cloud near its lower limit.
The downtrend is likely to be continued as the Gold cross (5) formed by the Tenkan-sen and the Kijun-sen does not look strong enough yet – the Rotation line (3) started to turn to the downside.
Given the general downside market sentiment we can suppose that the Kijun-sen will not manage to prevent the price from further downfall. If the support turns out to be strong, an entry into the Cloudiness zone and a recovery to 1.3400 are possible.
Performed by Vadim Idrisov, Analytical expert
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