An interesting price action event has taken place on the GBPCHF for this trading session. A breakout has occurred to the high side during the early asian session trading hours. This is a red flag for us war room traders, as we know breakouts that occur during the asian session have a tendency to collapse back in on themselves.
Now we’re in London trading hours, the breakout has faded, prices are being driven back down and the market is showing clear rejection of higher prices. We’ve got some good bearish momentum going on here as the market sells off a major weekly resistance level. This very well looks like the end of the uptrend as all the technicals on the chart now transition us into a bearish bias.
Price action traders can watch for breaks of the previous day low for ‘extra confirmation’ of bearish momentum, or more aggressive traders could consider shorting this event directly at market price.
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