Trade of the Day: GBP/CHF

By: Dima Chernovolov
GBP/CHF recently broke the key support level 1.2195, which was previously identified by Autochartist. Autochartist rates the Significance of this support 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 fall toward the support level 1.2165.

As can be seen from the daily GBP/CHF chart below – the price earlier reversed down from the resistance zone located between the key resistance level 1.2400 (which has been reversing the price since the middle of March), the upper daily Bollinger Band and the 61.8% Fibonacci correction of the sharp downward impulse from February. The proximity of this resistance zone adds to the probability GBP/CHF will continue to fall toward the support level 1.2165.