The GBPCHF has formed a Bearish Engulfing Bar (BEEB) on the weekly price action chart. This BEEB has formed rejecting a long term key resistance level that has been a proven key level. This is the same level I spoke about in the latest setup I posted about with the three day pin bar that sent price crashing lower on this pair. You can read that original post here: GBPCHF Forms Three Day False Break Pin Bar
Price has begun a retrace higher and it would not be surprising to see price retrace a little higher because this weekly engulfing bar is so large. As discussed in my most recent Forex education trading lesson, for this reversal signal to be confirmed, price will need to break the engulfing bar low to be confirmed.
Price recently on this pair has made lower highs and this could lead to confusion about whether this Forex pair is trending or not. This pair is still caught in a range and sideways trading. For this pair to be in an up-trend price would need to be making higher highs and higher lows and for the key resistance to be broken. These higher lows are rotations within the overall range and if traders look at the chart from left to right they can clearly see their is no clear trend in play.
GBPCHF Weekly Chart
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