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GBPCHF Renko Analysis - 100 Pip Box Size

GBPCHF – 100 Pip Renko Box Size

GBPCHF looks to be a very ripe currency pair that offers a good trading opportunity. In the 100 Pip GBPCHF Renko chart below, we notice that applying the Donchian Channel, price saw a reversal after briefly testing the upper range to 1.5055, resulting a bearish reversal Renko box.

While the current Renko box is bullish, we expect the gains to be capped at 1.5055.

GBPCHF Renko Analysis - 100 Pip Box Size
GBPCHF Renko Analysis – 100 Pip Box Size

The bias is to the downside, targeting 1.46 – 1.455 and the reasons are as follows:

  1. Bearish reversal Renko box indicates a potential move to the downside
  2. Comparing price action to Stochastics, we notice a bearish divergence as price makes a higher high and Stochastics makes a lower high
  3. The divergence is expected to retest the previously broken resistance at 1.46 – 1.455 that was briefly tested for support
  4. Applying the median line tool, price broke out of the median line and rallied back, but has failed to break back in to the median line (further validated by the bearish reversal Renko box).

From the above, we therefore conclude that GBPCHF could see a potential dip to 1.46 – 1.455. If support here holds, GBPCHF could see another strong rally.

Alternatively, if support at 1.46 – 1.455 fails, GBPCHF could decline to as low as 1.43 – 1.42.

It is therefore recommended to sell from 1.50 or at market targeting 1.46 – 1.455 with the option to trade some positions to 1.43 – 1.42.

Likewise, having pending buy orders at 1.46 – 1.455 and 1.43 and 1.42 will offer some longer term trading opportunities.

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