GBP/CHF breaks below an upside support line


GBP/CHF has been trading in a sliding mode since Wednesday, and today, it managed to fall below the upside support line taken from the low of October 1st, and the 1.2657 barrier, marked by the low of October 18th. In our view, this has confirmed the completion non-failure swing top, which combined with the dip below the upside line, constitutes a trend reversal signal.

With that in mind, we believe that the dip below 1.2657 may have opened the door towards the low of October 14th, at 1.2593. The bears may decide to take a break after testing that zone, thereby allowing a corrective bounce, but if that stays short-lived below 1.2657, another round of selling could be possible, perhaps even below 1.2593. If this is indeed the case, we would expect the break below 1.2593 to set the stage for declines towards the low of October 1st, at 1.2503.

Shifting attention to our short-term oscillators, we see that the RSI lies below 50, slightly above 30 and points down. It could fall below 30 soon. The MACD runs below both its zero and trigger lines, pointing down as well. Both indicators detect strong downside momentum and corroborate our view for further declines in this exchange rate.

On the upside, we would like to see a recovery above 1.2718 before we start examining whether the bulls have stolen the bears’ swords. The rate will already be well above the aforementioned upside line, and this may encourage advances towards Wednesday’s peak at 1.2763. If the bulls are not willing to give up at that zone ad manage to break higher, then we could see them climbing towards the peak of September 17th, at 1.2820.

GBPCHF

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

68.02% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Feed news

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD hovers around 1.1350 as investors ignore yields

US Treasury yields reached fresh weekly highs but fell short of underpinning the greenback. EUR/USD firmly advanced to a fresh weekly high, although a substantial advance is still unclear. 

EUR/USD News

GBP/USD plummets to fresh 2021 lows sub-1.3200

The greenback recovers its poise as the mood partially sours, sending GBP/USD to its lowest since December 2020. Impending Brexit risks and rising covid cases in the UK weigh on the pound, fueled by persistent uncertainty about the Omicron variant.

GBP/USD News

Gold sellers happily adding on spikes

Gold trades lower in range, with the bright metal currently at around $1,781 a troy ounce. Trading has been choppy throughout the day as investors struggle to digest coronavirus developments.

Gold News

Cardano price in phenomenal buying zone as ADA targets $3

A brief technical and on-chain analysis on Cardano price. Here, FXStreet's analysts evaluate different patterns and indicators that suggest ADA is primed to advance further.

Read more

Cyber Monday 2021 Discounts!

Glued to your trading screen on Cyber Monday? Upgrade your skills by signing up for FXStreet’s Premium service, offered at a discount of up to 50%. Fellow traders have already taken advantage of Black Friday profits. What about you? 

Subscribe now!

Majors

Cryptocurrencies

Signatures