The overall trend for the GBP/CHF remains bullish since the higher highs and higher lows pattern is in place. Early November, GBP/CHF rejected the uptrend trendline, after which price broke above the previously established resistance at 1.1969. On the pullback, this resistance area became the support and was rejected along with the 50 Exponential Moving Average.
Then the uptrend continued and the price has been consistently rejecting the uptrend trendline and today has approached it yet again, along with the 50 Simple and Exponential Moving Averages. It will be very important to see the 4h closing price above both MAs as well as the uptrend trendline, which should confirm further growth for the GBP/CHF.
In this case, the price is likely to start moving up, potentially starting from tomorrow, because this is when the next Fibonacci cycle starts. Eventually, GBP/CHF could be testing the 1.2454 resistance level, which is confirmed by two Fibs. The first Fibs applied to the current corrective move down, where the 50% retracement level is being rejected. It shows that 361.8% cleanly corresponds to the 78.6% Fibs as per the daily chart.
This makes a potential growth of 250 pips in the coming weeks, although such a forecast can only remain valid as long as the current support area near 1.2080 holds. If there is a break below the uptrend trendline and Moving Averages, a bullish scenario will become much less likely. Then, GBP/CHF might start moving down, potentially towards the 1.2000 psychological level.
Key support levels: 1.2083, 1.2040
Key resistance levels: 1.2200, 1.2454
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Disclaimer:The analysis presented in this article is for educational purposes only and should not be considered as financial advice.
Then the uptrend continued and the price has been consistently rejecting the uptrend trendline and today has approached it yet again, along with the 50 Simple and Exponential Moving Averages. It will be very important to see the 4h closing price above both MAs as well as the uptrend trendline, which should confirm further growth for the GBP/CHF.
In this case, the price is likely to start moving up, potentially starting from tomorrow, because this is when the next Fibonacci cycle starts. Eventually, GBP/CHF could be testing the 1.2454 resistance level, which is confirmed by two Fibs. The first Fibs applied to the current corrective move down, where the 50% retracement level is being rejected. It shows that 361.8% cleanly corresponds to the 78.6% Fibs as per the daily chart.
This makes a potential growth of 250 pips in the coming weeks, although such a forecast can only remain valid as long as the current support area near 1.2080 holds. If there is a break below the uptrend trendline and Moving Averages, a bullish scenario will become much less likely. Then, GBP/CHF might start moving down, potentially towards the 1.2000 psychological level.
Key support levels: 1.2083, 1.2040
Key resistance levels: 1.2200, 1.2454
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.