Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF recently broke the 4-hour Flag chart pattern, which was recently identified by Autochartist. Autochartist measures the quality of this Flag at the 9-bar level – which reflects the maximum-strength Initial Trend (10 bars), above-average Uniformity (6 bars) and significant Clarity (8 bars). GBP/CHF is expected to rise toward the forecast price 1.1670.
As can be seen from the daily GBP/CHF chart below – the pair previously reversed up from the support area located between the key support level 1.1530 (which stopped the earlier sharp downward impulse wave at the start of this month) and the lower daily Bollinger Band. The proximity of this support area and the clear bullish divergence on the daily Stochastic indicator increase the probability GBP/CHF will continue to rise toward the forecast price 1.1670.