Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to rise inside the hourly Up Channel chart pattern which was identified earlier by Autochartist. Autochartist rates the quality of this Up Channel at the 5-bar level – which is the result of the slow Initial Trend (2 bars), medium Uniformity and Clarity (5 bars). GBP/CHF is expected rise further inside this Up Channel – in line with the earlier upward reversal from the major support area shown below.

As can be seen from the daily GBP/CHF chart, the price earlier reversed up from the key support area lying between the multi-month support level 1.2240 (which stopped the sharp downtrend in January), and the lower daily Bollinger Band. The proximity of this support area increases the probability GBP/CHF continue to rise inside this daily Up Channel.