GBPCHF: Connected harmonic structures suggesting potential debasement

GBPCHF: Connected harmonic structures suggesting potential debasement

After bottoming out in the 1.20 zones, the GBPCHF pair has inched higher within three waves that created potential bearish harmonic AB=CD pattern.

This main harmonic formation has contained another potential bearish harmonic Crab pattern inside ABCD waves as seen on the provided GBPCHF four-hour chart below.


With that in mind, we believe that, some kind of debasement could be under preparation.

Assessing indicators, Kairi indicator is edging lower below zero level and that affirms the bearish possibility, while short-term top might have been placed already in the 1.2850 zones according to tops and bottoms indicators reading.

Any shorts for GBPCHF should be protected by stop loss above 1.29 level.

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Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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