GBP/CHF Price – Bullish Momentum May Resume if Support Holds Firm
The DailyFX Q4 GBP Forecast is available to download.
GBP/CHFis starting to flash a few positive signals and may look to resume its recent rally over the next few days if current support levels hold. The daily chart shows that the pair are currently touching two levels of support, the short-term 20-day moving average (red line) at 1.2740 and the important 61.8% Fibonacci retracement level at 1.2757. Just above here, is the recent supportive uptrend off the mid-October low which forms the bottom of a bullish pennant.
Pennant Patterns: Trading Bearish and Bullish Pennants
If these two support levels hold firm, it should enable GBP/CHF to try to push back into the pennant, when traders should look to see if downtrend resistance holds. If the pair close above the downtrend, or make a decisive break higher, then the October 17 high at 1.2894 comes into play and would be the first upside target before a possible full retrace back to 1.3425. To hit this level, GBP/CHF will need positive UK General Election/Brexit headlines.
A move lower should find initial support from the recent double lows around 1.2675 and 1.2620. If these lower levels are tested, then bulls should retreat to the sidelines and wait until the 50% Fibonacci retracement and 200-day moving average around the 1.2550 – 1.2570 area.
GBP/CHF Daily Price Chart (February – November 4, 2019)
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What is your view on GBP/CHF – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author at nicholas.cawley@ig.com or via Twitter @nickcawley1.
