The general trend in all GBP pairs is up. Even after periods of lower lows at the beginning of the month, GBP pairs look to be recovering.
To conclude our week, we shall focus of GBPCHF. From its technical set up, chances of higher highs looks elevated now that there is that bounce from the main support line connecting September and December 201 lows. While that was happening, note that there is a stochastic buy signal turning from the oversold territory. For us to confirm long positions, we need a clear resistance trend line break above in the 4HR chart.
In the entry chart, the same set up has been replicated and when we connect week 2 and week 4 highs in December 2017, then a wedge is formed with a clear resistance trend line in the cards. I recommend buys and any close above the resistance trend line today means we go long after that candle is conclude.
This is how I will trade this pair today:
Buy stop: 1.3260
Stop Loss: 1.3200
Take Profit: 1.3560
Don’t forget labor reports today from the US and Canada.
Enjoy the weekend and let me know.

gbpchf 4hr chart for January 5, 2018

Source: Dalmas

gbpchf daily chart for January 5, 2018

Source: Dalmas

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