DAILY CHART ANALYSIS OF GBPCHF From a technical point of view, the analysis of GBPCHF reveals a sharp change in the pair from a period of consolidation to a very strong bearish price action. GBPCHF was unable to continue its uptrend above the 1.0700 level, and after the formation of a distribution top, the sellers became dominant. Subsequently, the pair started folding in lower highs and lower lows on a regular basis, which is the first evidence of a change in market structure to the downside. IGBPCHF is presently below important dynamic resistance zones, illustrating that the pair has been consistently sold and there is no sign of a bounce in price. One impulsive leg down was followed by the rejection from the supply area 1.0740 to 1.0700. GBPCHF made a new low below 1.0600 that was a support level where the price had stayed balanced during the range not long ago. As soon as the price fell below this level, the price descended rapidly, and strong bearish candles clearly demonstrated the seller's determination. GBPCHF continued its journey towards 1.0450 with minimal retracements, which is the characteristic of a trend rally as opposed to a correction phase. Following the Fibonacci retracement tool, which was drawn from the swing high at about 1.0705 to the recent low at approximately 1.0395, reveals the resistance areas that are currently relevant. It turns out that GBPCHF is currently reacting to the level at which the 23.6% Fibonacci retracement is situated, i.e., near 1.0465. In fact, this region serves as the immediate resistance level, thus the minor rebounds are constrained. The 38.2% retracement is approximately at 1.0515, which is in line with the previous breakdown structure. It would be a stronger barrier if the price attempts to recover. The 50% Fibonacci retracement level is near 1.0555, which is the midpoint of the bearish impulse. If GBPCHF goes back up to this level, it is very likely that the sellers will come in again because this level corresponds to the former consolidation that was turned into resistance. Moreover, the 61.8% Fibonacci retracement level, above that which is around 1.0605, serves as the key invalidation level for the bearish continuation. A rally that lasts above 1.0605 would be a sign of a deeper correction, but the present structure does not support that scenario. Price action currently witnesses GBPCHF consolidating near the 1.0400 demand zone, which is evidenced by the multiple tests of that level. This area between 1.0390 and 1.0420 has become a short-term support line where the sellers' strength is diminishing. GBPCHF is trying to find its footing, but the absence of robust buying candlesticks indicates that the accumulation phase is still not very strong. During trending markets, such stops frequently result in a resumption of the trend after the support breaks. If GBPCHF can make a firm close below 1.0390, 1.0340 might be the next support level, followed by the 1.0300 (psychological) level. These places are old reaction zones, and round figures support that prices typically go to during the lengthy downtrends. The broader bearish pattern is still valid, and any rally should be seen as a correction rather than a change of trend only if GBPCHF stays under 1.0515. Resistance layers are quite clearly defined on the upside-down side. Original resistance is at 1.0465, which is the 23.6% Fibonacci retracement. Another robust resistance at 1.0515 coexists with the 38.2% level and the area of the structural breakdown. 1.0555 zone at the 50% retracement is a major decision point, while 1.0605 at the 61.8% retracement is the line of dividing between the correction and the possible trend change. Trendlines and moving averages on the chart are descending, and the price keeps trading below them, which confirms the bearish sentiment. GBPCHF is unable to retake these dynamic resistance levels, which tells that sellers continue to dominate the market direction. Momentum behavior is in favor of the continuation, as declines are rapid while recoveries are slow and even overlapping. GBPCHF as a whole is still staying in a clearly defined downtrend, which is marked by very strong impulsive drops and quite weak retracements that are going off of Fibonacci resistance. The main area to keep an eye on is the resistance between 1.0465 and 1.0605 and support near 1.0390. If the price breaks below support, then the selling wave will probably go down to 1.0340 and maybe 1.0300, but only a strong break above 1.0605 would start to question the current downward structure.
