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.