Chart Art: USD/CHF’s Reversal and GBP/USD’s Pullback Opportunities

National Financial Solution > Forex Trading > Chart Art: USD/CHF’s Reversal and GBP/USD’s Pullback Opportunities

Yo! Welcome to another round of charting!

We’re all about the majors today as we check out GBP/USD‘s pullback and USD/CHF‘s reversal pattern.

Who needs a Hot Girl Summer when these setups provide enough fun, amirite?

USD/CHF: 1-hour

USD/CHF 1-hour Forex Chart
USD/CHF 1-hour Forex Chart

USD/CHF is consolidating in what looks like a Head and Shoulders pattern after last week’s sharp upswing.

Are dollar bulls running out of steam? A break below the pattern’s “neckline” could lead to a trip to the 100 SMA or even the .9100 major psychological area.

But what if the dollar isn’t done gaining pips against the franc? Watch out for a bounce from the .9200 levels, which could push USD/CHF back to its .9240 highs.

Keep close tabs on this one, forex friends!

GBP/USD: 4-hour

GBP/USD 4-hour Forex Chart
GBP/USD 4-hour Forex Chart

In case you were too busy bingeing Loki on Disney Plus, then you’ll know that GBP/USD has broken below a key trend line support and has dropped by 250 pips before finding some buyers.

The pound has bounced by 150 pips since then and is now flirting with the 38.2% Fib retracement of the last downswing.

Can GBP/USD bears extend the pair’s downtrend? Stochastic is already showing us a nice bearish divergence on the 4-hour time frame but conservative bears can probably wait for some momentum before jumping in.

A short trade below the 38.2% Fib could work if GBP/USD drops back to its June lows or even makes new monthly lows in the next trading sessions.

If the bulls manage to push GBP/USD above its weekly highs, though, then you should also be ready to trade the upswing all the way to the broken trend line or the 100 and 200 SMAs.

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