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Rectangle Pattern on Weekly GBP/CHF Chart

January 3, 2021 (Last updated on February 24, 2021) by

The long-term rectangle formation that you can now see on the weekly chart of the GBP/CHF currency pair can be dated back to March 2020. Since then, the pair has been trading inside a horizontal channel that can be used for a breakout setup to the upside as well as to the downside.

You can see the borders of the rectangle (horizontal channel) marked with the  yellow lines. I will set my pending entry orders to where the cyan lines are (at 10% of the rectangle’s height above and below the borders). I will set my take-profit orders to the levels marked with the green lines. They are positioned at 100% of the pattern’s height above and below the borders. I will set my stop-loss to the low or high of the breakout candle depending on the direction of the breakout. However, if the breakout candle is located mostly outside the pattern, I will use the low or high of the preceding candle.

GBP/CHF - Rectangle Pattern on Weekly Chart as of 2021-01-03

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.

Update 2021-02-01 18:02 GMT: The price broke through the rectangle’s upper border and triggered my long position entry at 5:55 GMT today. The open price is 1.22619, the stop-loss price is 1.21033, and the take-profit price is 1.27980:

GBP/CHF - Rectangle Pattern on Weekly Chart as of 2021-02-01 - Post-Entry Screenshot

Update 2021-02-24: After three weeks of a nearly non-stop rally, GBP/CHF hit my take-profit level at 01:02 GMT today:

GBP/CHF - Rectangle Pattern on Weekly Chart as of 2021-02-24 - Post-Exit Screenshot

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

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