The GBP/CHF currency pair has been trading within a very wide range through almost the entire year. The consolidation has begun back in April, where the price found resistance near the 1.2200 area. This resistance became a strong supply zone and was rejected multiple times. On the other side, there is the support, which has been formed near 1.1700 and also was rejected several times. This makes it a 500 pip wide range, where currently GBP/CHF is trading.
Last week GBP/CHF rejected the 1.1700 support area for the third time after the price broke below the uptrend trendline as well as the 50 Simple Moving Average. But the recovery was pretty fast, and in just 3 days price retired back above the uptrend trendline and the 50 SMA. Moreover, it broke above the downtrend trendline, suggesting increasing bullish pressure. Currently, GBP/CHF is finding support at 50 SMA, which is at 1.1930. As long as this support is being held, the price is likely to continue moving higher, potentially towards the top of the range.
Therefore, the nearest resistance is at the 1.2200 area, but if it will get broken, the price might increase further. The second and perhaps the key resistance is located at 1.2470, which is confirmed by 61.8% and 50% Fibonacci retracement levels, as can be seen on the chart. This makes it a 500 growth potential for GBP/CHF, but only as long as the 1.1930 support area holds.
On the downside, a daily break below the current support will invalidate the bullish forecast. Such price action should result in further decline, either towards the 1.1700 support or even 1.1000. But at this stage, such a scenario holds little probability.
Key support levels: 1.9000, 1.6000
Key resistance levels: 1.2200, 1.2470
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Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Last week GBP/CHF rejected the 1.1700 support area for the third time after the price broke below the uptrend trendline as well as the 50 Simple Moving Average. But the recovery was pretty fast, and in just 3 days price retired back above the uptrend trendline and the 50 SMA. Moreover, it broke above the downtrend trendline, suggesting increasing bullish pressure. Currently, GBP/CHF is finding support at 50 SMA, which is at 1.1930. As long as this support is being held, the price is likely to continue moving higher, potentially towards the top of the range.
Therefore, the nearest resistance is at the 1.2200 area, but if it will get broken, the price might increase further. The second and perhaps the key resistance is located at 1.2470, which is confirmed by 61.8% and 50% Fibonacci retracement levels, as can be seen on the chart. This makes it a 500 growth potential for GBP/CHF, but only as long as the 1.1930 support area holds.
On the downside, a daily break below the current support will invalidate the bullish forecast. Such price action should result in further decline, either towards the 1.1700 support or even 1.1000. But at this stage, such a scenario holds little probability.
Key support levels: 1.9000, 1.6000
Key resistance levels: 1.2200, 1.2470
Thanks for your support! If you liked this analysis, please support our profile with a 👍 and follow us to get a new daily analysis.
Disclaimer: The analysis presented in this article is for educational purposes only and should not be considered as financial advice.