Our focus is on GBPCHF and from the chart it’s clear that prices are on a down trend. I expect this trend to continue and while we might have a climactic bear pause judging from the way the past three or four candlesticks have been panning out, prices might appreciate slightly before resuming the overall bear move. Note that despite relatively high volumes, prices aren’t moving lower and you can check what’s happening from May 30 to June 1. If anything, chances are prices might edge higher in a short covering.
Because of the general bearish predisposition, we have two levels we should watch out. The first is the level of support that would represent a short covering at 1.3350. That’s our immediate resistance and it’s where we should be picking short opportunities in the 4HR chart. The other level is our support at 1.3050. Should sellers breach this level then we would likely see lower lows and sharp declines in prices.
For now, we remain neutral and see what happens.
Enjoy your trading.