Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF recently broke the 30-minute key support level 1.2729 which was previously identified by Autochartist. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four earlier price reversals from this price level. GBP/CHF is expected to continue to fall toward the support level 1.2698.

As can be seen from the GBP/CHF chart below – the price earlier reversed down from the pivotal resistance level 1.2790 (former support from March) – strengthened by the upper daily Bollinger Band and by the 38.2% Fibonacci correction of the downward impulse from April. The proximity of this resistance level increases the probability GBP/CHF will continue to fall toward the support level 1.2698.