Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF continues to fall insider the clear hourly Down Channel which was recently identified by Autochartist. Autochartist rates the quality of daily this Down Channel at the 6-bar level – which is the result of the slow Initial Trend (3 bars), above-average Uniformity (6 bars) and significant Clarity (8 bars). GBP/CHF is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the strong resistance area shown below.
As can be seen from the daily GBP/CHF below, the price earlier reversed down from the resistance area lying between the key resistance level 1.3400 (which stopped the sharp uptrend in March) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/CHF will continue to fall inside this hourly Down Channel.