On the 4-hour timeframe, GBPCHF is showing signs of a shift in momentum, with buyers attempting to take control of the market.
- ⚡Market Structure: The short- to medium-term trend is shifting towards a bullish accumulation phase. The price has successfully broken the previous downward structure by forming a Higher Low (HL) below, and is currently moving upward, testing the upper limit of the structure.
- ⚡Price Action: Around the current price (1.06474), the price is moving quite impulsively, dominated by healthy bullish candles. However, this movement is starting to hit the nearest Major Supply Zone (grey box above) in the 1.06600-1.06900 range. A thin upper wick is beginning to appear, indicating initial resistance from sellers in this premium area.
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Key Zones:
- ⚡Resistance/Supply: 1.06700 - 1.07000 (Main line of defense for sellers and determining the continuation of the breakout).
- ⚡Support/Demand: 1.05600 - 1.05900 (Strong demand zone that served as the initial foothold for the last upward impulse).
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✅ Elliott Wave Analysis
If we map this movement based on the Elliott wave cycle on the H4 timeframe:
- ⚡Wave Structure: The sharp recovery from the lowest price level appears to be the completion of a major corrective phase, and the market is now projected to begin a new impulsive upward cycle (Wave 1 or the beginning of a micro Wave 3).
- ⚡Current Status: Given that the price of 1.06474 is very close to the Supply resistance ceiling, this upward impulse will likely soon reach its short-term saturation point. In theory, the market will require an internal corrective wave phase (a "breathing" or pullback phase) to balance the order book before gathering new strength.
- ⚡Projection: Potential for a healthy short-term downward correction to test the Support Become Resistance (SBR) area below before readying for further upward expansion.
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The main bias for GBPCHF on the H4 timeframe is bullish.
However, tactically, for the next few candles, the next price movement is projected to move downward first (correction/pullback) towards the 1.05950-1.06150 area before eventually bouncing back to resume its uptrend.
- ⚡Market Structure: The short- to medium-term trend is shifting towards a bullish accumulation phase. The price has successfully broken the previous downward structure by forming a Higher Low (HL) below, and is currently moving upward, testing the upper limit of the structure.
- ⚡Price Action: Around the current price (1.06474), the price is moving quite impulsively, dominated by healthy bullish candles. However, this movement is starting to hit the nearest Major Supply Zone (grey box above) in the 1.06600-1.06900 range. A thin upper wick is beginning to appear, indicating initial resistance from sellers in this premium area.
---------------------------------------------------------------
Key Zones:
- ⚡Resistance/Supply: 1.06700 - 1.07000 (Main line of defense for sellers and determining the continuation of the breakout).
- ⚡Support/Demand: 1.05600 - 1.05900 (Strong demand zone that served as the initial foothold for the last upward impulse).
---------------------------------------------------------------
✅ Elliott Wave Analysis
If we map this movement based on the Elliott wave cycle on the H4 timeframe:
- ⚡Wave Structure: The sharp recovery from the lowest price level appears to be the completion of a major corrective phase, and the market is now projected to begin a new impulsive upward cycle (Wave 1 or the beginning of a micro Wave 3).
- ⚡Current Status: Given that the price of 1.06474 is very close to the Supply resistance ceiling, this upward impulse will likely soon reach its short-term saturation point. In theory, the market will require an internal corrective wave phase (a "breathing" or pullback phase) to balance the order book before gathering new strength.
- ⚡Projection: Potential for a healthy short-term downward correction to test the Support Become Resistance (SBR) area below before readying for further upward expansion.
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The main bias for GBPCHF on the H4 timeframe is bullish.
However, tactically, for the next few candles, the next price movement is projected to move downward first (correction/pullback) towards the 1.05950-1.06150 area before eventually bouncing back to resume its uptrend.
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.