Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF recently broke the 4-hour Triangle chart pattern which was previously identified by Autochartist. Autochartist rates the quality of this Triangle at the 6-bar level – which is the result of the below-average Initial Trend (4 bars), medium Uniformity (5 bars), and storing Clarity (8 bars). GBP/CHF is expected to fall toward the forecast price 1.1984 – 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 resistance area located between the resistance level 1.2100 (former strong support from October) and the 50% Fibonacci correction of the previous sharp downward impulse from last December. The proximity of this resistance area adds to the likelihood the pair will continue to fall toward the forecast price 1.1984.