The British Pound is trading bullish in the midweek on headlines from the Brussels that a Brexit agreement is very close to being agreed. On the other hand, the demand for safe-haven assets such as Gold, Silver, Japanese yen, and Swiss Franc is fading in the wake of optimistic news on Brexit and the U.S. China trade war.
On the technical front, the GBPCHF has entered the overbought zone while trading at 1.2745.
On the weekly timeframe, the pair has completed 61.8% Fibonacci retracement, and technically it should halt the bullish trend.
On the smaller timeframe like 120 mins chart, the GBPCHF has formed a bullish engulfing candle right after testing the upward trend line support at 1.2620.
For now, the GBPCHF is facing immediate resistance at 1.2780, and bullish breakout of this can help us capture a buy position with a TP of 1.2900.
GBPCHF - Trade Setup
Entry - Buy Stop 1.2790
Take Profit - 1.2860 & 1.2900
Stop Loss - 1.2765
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