Who else is looking for more GBP-related setups?
If you are, then you won’t want to miss GBP/CHF pulling back to a potential resistance zone!
As you can see, a bit of recovery for overall risk sentiment helped GBP/CHF trade higher from its late December lows near 1.0650. In fact, the pair is currently trading closer to 1.0825 despite Switzerland printing better-than-expected inflation and retail sales figures earlier this week.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/CHF 4-Hour Forex Chart by TV
Let’s see how far GBP bulls can push GBP/CHF at its current levels. Take note that 1.0825 is not only close to October’s lows, but it’s also around a mid-channel line that’s been around since GBP/CHF’s downtrend started in mid-June!
If we look a bit closer, we’ll also notice that GBP/CHF’s current prices are not too far from the 4-hour chart’s 100 SMA and R1 (1.0850) Pivot Point levels.
Are we looking at an opportunity to sell GBP/CHF?
Look out for bearish candlesticks that may point to a rejection from the mid-channel area. Signs of a bearish momentum may draw in even more sellers and eventually drag GBP/CHF back to its 1.0650 lows.
But what if GBP/CHF isn’t done with its upswing?
A clear upside breakout above the 1.0850 area that we’ve marked could draw in buyers and make 1.0900 happen for GBP/CHF. We may even see a trip to the 1.1000 area of interest if there’s enough bullish momentum!
Of course, GBP/CHF’s will depend on who will win the standoff at the pair’s current levels. Who do you think will win? Which way will GBP/CHF go in the next trading days?