GBP/CHF – Breakout Buy Setup Based on Bullish Divergence (1H TF)

The GBP/CHF pair has been moving in a bearish trend, but momentum appears to be shifting. A strong bullish divergence has developed on the 1-hour chart, suggesting potential for a reversal.

Despite no clear reversal pattern at this stage, we’re eyeing a breakout above the last lower high (LH) as confirmation of a shift toward bullish structure. If the breakout occurs, we expect a new higher high (HH) to form, aligning with the divergence.

Retail sentiment is currently 90% long, which adds further interest to this setup. Our buy stop order is positioned to catch the move early, with a 1:1 risk-reward profile.

🔹 Pair: GBP/CHF
🔹 Timeframe: 1H
🔹 Trend: Bearish
🔹 Divergence: Bullish
🔹 Pattern: None
🔹 Sentiment: 90% Long (Myfxbook)
🔹 Bias: Neutral (awaiting structure shift)
🔹 Entry (Buy Stop): 1.08982
🔹 Stop Loss: 1.08207
🔹 Take Profit: 1.09757
🔹 Lot Size: 0.20
🔹 Risk/Reward: 1:1
🔹 Risk: $200
🔹 Potential Reward: $200

🎯 Strategy: Entry will only be triggered if price breaks above the previous LH. That would signal a shift in structure and validate the divergence setup.

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