Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to fall inside the daily Descending Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Descending Triangle at the 3-bar level – which reflects the slow Initial Trend (1 bar) and strong Uniformity (8 bars). GBP/CHF expected to fall further inside this Descending Triangle – in line with the earlier breakout of the support area shown below.

As can be seen from the daily GBP/CHF chart below – the price earlier broke below the support area lying between the key support level 1.2550 and the 50% Fibonacci correction of the previous upward impulse from August. This price area is acting as resistance zone after it was broken. The proximity of this resistance area increases the probability GBP/CHF will continue to fall inside this Descending Triangle.