GBP/CHF in Upward Channel

A nearly perfect ascending channel has formed on GBP/CHF daily chart. The channel’s beginning is located in late April and the price is still positioned inside the channel’s boundaries after three bounces from the top border and three bounces from the lower border.
The channel is shown with the yellow lines. The potential entry level is drawn using the cyan line, while the profit target level is depicted with the green line. I will only consider trading lower border breakout as I believe that only signals generated in reverse to the channel’s own direction are tradable with ascending or descending channels. Of course, you may use the pattern just to trade the GBP/CHF pair inside the channel using pullbacks from the range borders. Please click on the chart to see a bigger version:

The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/CHF pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2014-07-14 14:24 GMT: Short position entered at 1.52165 at about 12:34 GMT today. Initial stop-loss is set to 1.53017, while the current take-profit level is located at 1.49848. The actual take-profit level will be triggered a bit higher, as the TP line is slowly rising every day position remains open. Such breakout can easily turn out to be a fake-out:

Update 2014-07-16: Position closed at a stop-loss yesterday during a very strong pull-back wave:


If you have any questions or comments regarding this ascending channel on GBP/CHF chart, please feel free to submit them via the form below.