Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF recently broke the key support level 1.2635 which was previously identified by Autochartist on the daily charts. Autochartist rates the Significance of this support level at the 4-bar level – which is the result of the four previous price reversals from this price level. GBP/CHF is expected to continue to fall toward the forecast level 1.2556.
As can be seen from the daily GBP/CHF chart below – the price earlier reversed down from the resistance area located between the long-term resistance level 1.2800 (which has been reversing the price from the middle of April) and the upper daily Bollinger Band. The proximity of this resistance area adds to the probability GBP/CHF will continue to fall toward the forecast level 1.2556.