Daily Forex Update: GBP/CHF
By: Dima Chernovolov
GBP/CHF continues to rise inside the clear 4-hour Down Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Down Channel chart at the 8-bar level – which is the result of the sharp Initial Trend (10 bars), above-average Uniformity (6 bars) and strong Clarity (8 bars). GBP/CHF is expected to rise further inside this Down Channel – in line with the earlier upward reversal from the key support area shown below.
As can be seen from the daily GBP/CHF below, the price earlier reversed up from the support area lying between the key support level 1.3070, support trendline from January and the 50% Fibonacci correction of the previous upward impulse from February. The proximity of this support area increases the probability GBP/CHF will continue to rise inside this Down Channel.