Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to rise inside hourly Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), below-average Uniformity (4 bars) and near-maximum Clarity (9 bars). GBP/CHF is expected to rise further inside this Down Channel – in line with the earlier breakout of the major resistance level show below.

As can be seen from the weekly GBP/CHF chart below, the price earlier broke through the major long-term resistance level 1.2200 (which has been steadily reversion this currency pair form the start of last year). This price level is acting as the strong support after it was broken.  The proximity of this support level and clear weekly uptrend increase the probability GBP/CHF will continue to rise inside this hourly Down Channel.