Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF continues to rise inside the 30-minute Up Channel chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (4 bars), below-average Uniformity (4 bars) and significant Clarity (7 bars). GBP/CHF is expected to rise further inside this Up Channel.
As can be seen from the daily GBP/CHF chart below – the price earlier broke the resistance area lying between the key resistance level 1.2500 (previous multi-month low from July and August) and the 50% Fibonacci correction of the downward impulse from October. This price area is acting as the support zone after it was broken. The proximity of this support area adds to the probability GBP/CHF will continue to rise inside this Up Channel.