Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to rise inside the 30-minute Up Channel chart pattern which was previously identified by Autochartist. Autochartist rates the quality of Up Channel at the 4-bar level – which is the result of the slow Initial Trend (1 bar), below-average Uniformity (4 bars) and strong Clarity (8 bars). GBP/CHF is expected to rise further inside this Up Channel – in line with the earlier breakout of the resistance level shown below.

As can be seen from the daily GBP/CHF chart below – the price earlier broke the resistance level 1.2350 (which reversed the price at the start of February). This price level is acting as the strong support after it was broken. The proximity of this support level and the clear daily uptrend increase the probability GBP/CHF will continue to rise inside this 30-minute Up Channel.