GBP/CHF: Clean Flag Pattern Signals Potential Breakout
06 September 2024
A clean and straightforward technical setup has emerged on the British Pound to Swiss Franc (GBP/CHF) pair. Over the past three weeks, the price has been moving sideways, forming what appears to be a rectangle or flag pattern, marked by black lines. The top of this flag is reinforced by a horizontal resistance level marked with orange.
Trading this setup is fairly simple. A breakout above the upper black line, followed by a breach of the orange horizontal resistance, would provide a strong buy signal. This would indicate a bullish continuation, making it a clear opportunity to go long. Conversely, if the price breaks below the lower black line of the pattern, it would signal a rejection of the orange resistance area and suggest a bearish move. In this case, it would be a signal to sell.
With non-farm payrolls on the horizon, this key data release could act as the catalyst to push the pair in either direction. Keep an eye on the breakout levels for a potential trade opportunity.