Trade of the Day: GBP/CHF

By: Dima Chernovolov

GBP/CHF continues to fall strongly after the pair broke the hourly key support level 1.2003, which was earlier identified by Autochartist. Autochartist rates the significance of this support level at the 5-bar level – which is the result of the 5 recent reversals from this price level. GBP/CHF is expected to fall further toward the forecast price 1.1903.

As can be seen from the daily GBP/CHF chart below, the breakout of the key support level 1.2003 was preceded by the downward reversal from the powerful resistance area located between the long-term resistance level 1.2200 (which has been reversing the price from April) and the upper daily Bollinger Band. The proximity of this resistance area increases the probability GBP/CHF will continue to fall toward the forecast price 1.1903.