Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF recently broke the key resistance level 0.6875, which was previously identified by Autochartist. Autochartist rates the Significance of this resistance level at the 3-bar level – which is the result of the three previous price reversals from this price level. GBP/CHF is expected to continue to rise toward the forecast level 1.2163.

As can be seen from the daily GBP/CHF chart below – the price earlier reversed up from the strong support area located between the key support level 1.2110 (which has been reversing the price from the start of March) and the lower daily Bollinger Band. The proximity of this support area and the oversold daily Stochastic increase the probability GBP/CHF will continue to rise toward the forecast level 1.2163.