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Multiple Opportunities Forming on the GBP/CHF

Last updated 11/29/2011 8:25 PM EST (GMT -5) 0 Comments - Add your comment

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Bradley W. Gareiss

Technical Analyst, GFT

The GBP/CHF chart is an example of excellent price symmetry creating multiple opportunities.  There are several patterns forming, but we will only analyze the two we feel are most important for our feature.  We will be going over a bearish Gartley and a bullish Gartley.

First we will go over the bearish Gartley on the 4hr Chart.  We are looking to sell the GBP/CHF if it rises to 1.4500 at point D.  Point D is located at the convergence of the following points:

We would place our stop for the bearish Gartley at 1.4548.  Our initial profit target would be 1.4428 (38.2% of CD).  The trade is invalid if the pair drops below 1.4256 before reaching the entry.

Now we will go over the bullish Gartley on the 2hr Chart.  We are looking to buy the GBP/CHF if it falls to 1.4231 at point D.  Point D is located at the convergence of the following points:

We would place our stop for the bullish Gartley at 1.4192.  Our initial profit target would be 1.4290 (38.2% of CD). The trade is invalid if the pair rises above 1.4410 before reaching the entry.

We do not know if the pair will move up or down from where it is now.  We are simply saying we will sell if it rises to 1.4500, and we will buy if it falls to 1.4192.  As always, we will watch for long bars in the CD leg of either pattern assuming one of the completes over the course of the next day.  If we see long bars in the CD leg or the pattern accelerates into the entry, we will be weary of taking the trade.

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  • 4hr Chart - Bearish Gartley; sell at 1.4500.
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  • 2hr Chart - Bullish Gartley; buy at 1.4231.

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