USD/CHF Buying opportunity

We have seen USD/CHF in a clean downwards channel recently with no sign of a reversal. However, we are approaching a strong demand area which has been quite significant in holding previous support.

Although price has broken below the structure, I am seeing this as a mere extension of price in order to catch sellers out before a rejection and a move upwards to channel highs again.

By using pattern separation I have decided that the steeper descending channel has a chance of breaking out and so I plan on entering the market via a buy stop with breakout strategy.

The confluence for this setup is as follows:

- extension of price to trigger stop losses
- steep channel with higher probability of breaking
- strong demand zone acting as support
- potential double bottom