Forex Updates on GBPUSD and USDCHF

Forex Updates on GBPUSD and USDCHF

During the Sunday night Forex review, the GBPUSD was anticipated to potentially move up and the USDCHF was anticipated to potentially move down. Here's an update of the technical analysis patterns that are developing.

Forex Updates on GBPUSD and USDCHF
Forex Updates on GBPUSD and USDCHF Pixabay Images

GBPUSD

The GBPUSD daily chart shows that price retraced upwards to the ATR (red plus sign) and managed to flip it from red to blue.  However, a dot has plotted above the price indicating that there is still a potential overhead resistance area at 1.3128.  Price could continue up to the 1.3128 area or price could return to the ATR at 1.2844 and test for support. 

Forex Updates on GBPUSD DailyThe GBPUSD weekly stochastics indicates that the market has been overbought and is now turning down.  However, the bullish candlestick that is forming needs to be watched as it is potentially forming a pivot low, which if completes will potentially push price upwards.  The candlestick will not complete until Friday at the market close.  If the pivot low formation completes on Friday, next week could see price potentially pushing higher on the GBPUSD but the 1.3295 area will need to be monitored as it could potentially offer resistance, as it did previously.

Forex Updates on GBPUSD Weekly

USDCHF

The USDCHF daily chart shows that price is approaching the ATR (plus sign) at .9983, after forming divergence on the Stochastics and the ADX indicated traders would be potentially taking profits.  The critical question in this area is will the ATR support price?  If a bullish candlestick formation occurs it is likely that the ATR may provide some support.  However, a better pattern would be if price were at the ATR and the stochastics was potentially oversold.  This would further confirm an upward movement in the near future is likely.

Forex Updates on USDCHF WeeklyThe weekly chart indicates that the USDCHF is potentially overbought and a potential bearish candlestick may be developing.  If the candlestick continues in a bearish formation, it will likely kick off a downward move back to the ATR on the weekly chart.  However, the FOMC meeting minutes will be released today at 2pm and that could potentially change the candlestick formation to bullish.

Forex Updates on USDCHF - Daily Chart

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