Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF recently broke the hourly Down Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Down Channel at the 7-bar level – which is the result of the below-average Initial Trend (4 bars) and strong Uniformity and Clarity (8 bars). GBP/CHF is expected to rise toward the forecast price 1.2387.
As can be seen from the daily GBP/CHF chart below – the price earlier reversed up from the combined support zone lying between the key support level 1.2300(which has been reversing the price from February), lower daily Bollinger Band and the support trendline of the daily down channel from April. The proximity of this support zone and the oversold daily Stochastic increases the probability GBP/CHF will continue to rise toward the forecast price 1.2387.