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  • GBP/CHF bears are lurking below the hourly resistance structure.  
  • There are prospects of a significant downside retracement.

GBP/CHF is meeting resistance and showing signs of exhaustion on the lower time frames.  

The following is a top-down analysis that illustrates the daily chart’s prospects and the lower time frame’s structure.

Daily chart

The daily chart is meeting resistance and there are prospects for a significant resistance with the 50% mean reversion marked as a reasonable downside target that has a confluence with old resistance.  

4-hour chart

The 4-hour chart’s 50% mean reversion is slightly higher meeting prior resistance.

Hourly chart

There was some slight divergence on the RSI but bears will want to see the 8 open vs the 8 close part ways again to confirm the bearish bias prior to looking for an optimal entry.