The daily chart of the GBP/CHF currency pair is showing a classic version of a well-formed bullish pennant pattern. It appears exactly at the bottom (as of now) of a major downtrend, which lasts since mid-April. Luckily, a pennant can be traded irrespective of the preceding trend.
On the image below, you can see the pattern marked with the yellow lines. My potential entry level is marked with the cyan line. It is placed at 10% of the pole’s length above the upper border. My potential take-profit level is shown with the green line, which is located at 100% of the pole’s length above upper border. My stop-loss will be set to the low of the breakout candle if it is trading inside the pennant. If that candle trades mostly above the upper border, I will use the preceding candle’s low instead. I will ignore bearish breakouts from this bullish pennant. You can see a bigger screenshot by clicking on the chart:
I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this GBP/CHF pattern. You can trade it using my free Chart Pattern Helper EA.
If you have any questions or comments regarding this bullish pennant on the GBP/CHF chart, please feel free to submit them via the form below.
