GBP CHF REVERSES SHARPLY BEARISH AS PREDICTED
As I had pointed out in the analysis of the GBP CHF last week (see blog post archives), despite the Bullish Breakout Signal above the Penant of the Daily Chart, the current market conditions that have restricted major breakouts led to the appearance of a Sharp Bearish Reversal Signal. This initially cancelled out the Bullish Breakout Signal and was expected to take us back inside of the Pennant and back to Support ... DAILY CHART PENNANT PROJECTED REVERSAL From the graph below, you can see that this Signal did in fact lead to the move back to Support as forecast, in sync with the theory of False Breakout Reversals from the Trading Manual... DAILY CHART BEARISH REVERSAL AS PREDICTED STRUCTURE OF FALSE BREAKOUT REVERSALS In False Breakouts, the market reverses aggressively back inside of the Consolidation following a failed Breakout at the other end. Despite the fact that a strong Bullish Signal appeared above