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EURGBP & GBPCHF Flag Setups – Looking For Breakouts

gbpchf-flag

Looking at some nice Flag pattern structures on GBPCHF and EURGBP. These charts I am showing you here at the 8 hour charts, but these flags are also visible from the 4 hour as well.

A flag pattern is when you see a clean counter-Trend trend-line structure form against a recent strong move.

In the case above we have a bullish flag, as a bearish trend line forms again the recent strong bullish momentum. This creates the classic ‘flag’ shape.

The key is to look for a strong breakout candle that closes through the trend line and signals trend continuation. I call these dam wall setups, when the dam wall breaks (the trend line), the market usually explodes.

Here is a bearish flag setup on the EURGBP

eurgbp-bear-flag

This is just the same setup, inverted for a bearish scenario.

We’ve actually got some strong news coming out of the central banks for CHF and GBP, so these pairs should experience a volatility injection which most likely will fuel the breakout.

Let’s see what happens.



This post first appeared on Forex Signals, please read the originial post: here

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EURGBP & GBPCHF Flag Setups – Looking For Breakouts

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