Trade of the Day: GBP/CHF
By: Dima Chernovolov
GBP/CHF continues to fall inside the hourly 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 strong Clarity (8 bars). GBP/CHF is expected to fall further inside this Up Channel.
As can be seen from the daily GBP/CHF chart below – the pair earlier reversed down from the resistance area located between the resistance level 1.17000 (which has been reversing the price from the start of June), upper Bollinger Band and the 50% Fibonacci correction of the downward impulse June May. The proximity of this resistance area and the clear daily downtrend increase the probability GBP/CHF will continue to fall inside this Up Channel.