Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
GBPCHF Price Breaks Below Trendline Support, May Fall Further

GBPCHF Price Breaks Below Trendline Support, May Fall Further

Martin Essex, MSTA,

GBPCHF price and technical analysis:

  • GBPCHF has dropped through trendline support in place for almost a month.
  • Now further losses are possible.

GBPCHF in danger of weakening

The GBPCHF cross rate has dropped below support from a rising trendline that has been in place since September 21, suggesting that a further decline is now possible.

The break occurred at the start of this week and the price has steadied since. To confirm that the rally is now over, the exchange rate will need to break convincingly below the 1.30 “round number” level where it is sitting currently but that could happen in the next few days.

GBPCHF Price Chart, Daily Timeframe (July 2 – October 18, 2018)

Latest GBPCHF price chart.

Chart by IG

If it does, the first target will be Monday’s low at 1.2946, followed by the 1.2936 level where the 20-day moving average currently sits. Longer-term, the obvious target is the low just above 1.25 touched on September 21 but both the 50-day and 100-day moving averages would need to be taken out first.

To the upside, there is resistance at 1.3144 where the old support trendline now sits, and before that at 1.3116, the high reached on October 12.

From a fundamental perspective, there is a chance that after the failure of the Brexit negotiations between the UK and the EU this week, GBP will come under downward pressure. On the other side of the cross, CHF would likely benefit if “risk-off” sentiment persists in the markets.

Resources to help you trade the forex markets

Whether you are a new or an experienced trader, at DailyFX we have many resources to help you:

--- Written by Martin Essex, Analyst and Editor

Feel free to contact me via the comments section below, via email at martin.essex@ig.com or on Twitter @MartinSEssex

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES