H4
Last Friday the bulls returned to the GBP/CHF market and quickly recovered the pair to the upper limit of the 4-hour Ichimoku Cloud.
However, the Senkou Span did not let them go further and the week was closed inside the Kumo.
Nevertheless the short-term situation switched in favour of the buyers – the Tenkan-sen and the Kijun-sen formed a Gold cross (5) that is likely to provide support to the bulls in the nearest time.
Therefore in the nearest term we can expect the price to break the upper limit of the Cloud and fixate in a positive area. In case it succeeds this will denote the end of the correction phase on the market and resumption of the major positive trend.
H1
The situation changed in favour of the bulls in the 1-hour timeframe as well. As a result of last Friday’s active recovery the price crossed quite a wide range of the Ichimoku Cloud and appeared in a positive area.
At the moment there is a consolidation on the market above the upper limit of the Cloud.
Obviously the recovery will be continued as the Kumo changed its character to the upside and the Tenkan-sen and the Kijun-sen formed a Gold cross (5) applying by now.
Besides, the Chinkou Span is likely to leave the overbought zone in the nearest time.
Therefore during today’s trading session the Friday’s highs can be refreshed. The nearest target is 1.4470.
