Forex Trade Setup – Chart of the Day Sept. 9th
GBPCHF – 4hr
Since August 12th, the GBPCHF has been stuck under the 4hr Kumo without any penetration – until now. The current candle is the 1st candle to do so suggesting the pair may have found a short term bottom and starting a turn. What traders should be watching out for is a break of the ichimoku kumo or cloud.
Now this Kumo formation is not like a traditional one. It has an added feature which makes the situation a little more complex. It has a step down where there is a flat section in the future. These are called one or two steps depending upon how many steps it has. This one has one from the current candle but its enough to suggest the pair may climb, but pull back in the early part of next week if it only makes a mild break through the kumo. If it does, then the next flat section could become a springboard for the reversal to test the 1.5800 weekly high and possibly push higher making the reversal and bottom more legit. However, there is enough of a flat section above the current candle to also prop the pair up and push the pair higher so it could start a reversal here.
Watch for price to feel comfortable above the 1.5820-30 level (previous support/resistance) and if it does, then look for a move higher.
This is just some of the techniques and methods we use to trade the markets. If you are interested in learning these methods further, then make sure to check out our Advanced Ichimoku and Price Action Courses for further training where you can also join a community of traders and get permanent access to our forum for continual education. For more information about our services, visit https://2ndskiesforex.com
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