GBPCHF Price Chart: Potential for Break to the Upside
GBPCHF price analysis:
- The GBPCHF price chart shows the cross has been rising steadily since early in the new year.
- Now it has the potential to break above the rising channel it has traded in and for its gains to accelerate.
GBPCHF bullish price action
GBPCHF has been rising steadily for the past 10 days as the British Pound has been boosted by hopes of a soft Brexit while the Swiss Franc has been weakened by falling demand for safe havens as confidence has returned gradually to the financial markets.
GBPCHF Price Chart, Hourly Timeframe (January 7-17, 2019)
Chart by IG (You can click on it for a larger image)
As the chart above shows, it has risen already from a recent low of 1.2418 on January 10 to 1.2824 at the time of writing, climbing within a well-defined upward-sloping channel. That, in itself, suggests further gains.
However, it is now threatening to break above the resistance line joining the recent higher highs and, if it succeeds, those gains could accelerate. In particular, a climb above the highs at 1.2832 and 1.2834 touched on November 26 and November 22, 2018 respectively could be a precursor of a further advance to 1.30 and even the November high at 1.3174.
The price is already above the 20, 50 and 100-day moving averages and the only warning sign is that the 14-day relative strength index is only just below the 70 level that would suggest the cross has been overbought.
To the downside, though, these moving averages provide support at 1.2565, 1.2604 and 1.2767 respectively and there is further support from the lower trendline at 1.2578 and the June 15 low at 1.2528. Any losses therefore should be limited.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.