Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to fall inside the daily Down Channel chart pattern which was identified recently by Autochartist. Autochartist rates the quality of this Down Channel at the 5-bar level – which reflects the below-average Initial Trend (4 bars), medium Uniformity (4 bars) and strong Clarity (8 bars). GBP/CHF is expected to fall further inside this Down Channel – in line with the earlier downward reversal from the key resistance area shown below.

As can be seen from the daily GBP/CHF chart below, the price earlier reversed down from the strong resistance area lying between the resistance level 1.2400 (former powerful support from last November) and the 38.2% Fibonacci correction of the weekly downward impulse from May. The proximity of this resistance area increases the probability resistance will continue to fall inside this Down Channel.