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 below-average Initial Trend and Uniformity (4 bars) and higher Clarity (6 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 reversed up from the strong support zone set between the multi-month support level 1.2140 (which reversed the price multiple times in December) and the lower daily Bollinger Band. The proximity of this support zone adds to the probability GBP/CHF will continue to rise inside this Up Channel.