Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF continues to fall inside the well-formed 15-minute Falling Wedge chart pattern, which was recently identified by Autochartist. Autochartist rates the quality of this Falling Wedge at the 6-bar level – which is the result of the slow Initial Trend (1 bars), strong Uniformity (8 bars) and maximum Clarity (10 bars). GBP/CHF is expected to fall further inside this Falling Wedge.
As can be seen from the daily GBP/CHF chart below – the price earlier broke though the support area located between the long-term support level 1.2285 (which has been reversing the price from February) and the support trendline of the wide down channel from April. This price area is acting as the resistance zone after it was broken. The proximity of this resistance area increases the probability GBP/CHF will continue to fall inside this Falling Wedge.