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Rectangle Pattern on Weekly GBP/CHF Chart

January 3, 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.

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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