The British pound pair broke the resistance level at 1.1450 but is now stopping near 1.1650.
Is it time for a big correction?
Take a look at the area of interest I am watching on the 4 hour time frame.
GBP/CHF Forex 4 Hours Chart by TradingView
Did you miss the bullish breakout and rally on GBP/CHF?
The pair may be preparing to correct the confluence of the support areas extending between the 50% to 61.8% Fibonacci retracement levels.
In particular, the 50% Fibonacci level corresponds to the pivot point level (1.1480) and the key psychological mark at 1.1500 while the 61% Fibonacci level coincides with the uptrend line that has remained stable since March, as well as the dynamic support at the 100 SMA.
What will the upcoming UK retail sales report bring for this pair?
Remember that directional biases and volatility conditions in market prices are usually driven by fundamentals. If you haven't done your financial homework on the British Pound and Swiss Franc yet, it's time to check the economic calendar and stay up to date with daily essential news!
Figure analysts estimate a 0.5% decline in consumer spending for April, after a flat reading in March. This would highlight Britons' suffering from recent rising commodity prices, increasing pressure on the Bank of England to cut interest rates to reduce inflation.
In this case, GBP/CHF could pull back near a potential support area, which may still hold given the 100 SMA is above the 200 SMA to reflect bullish momentum. If so, the pair may once again set its sights on the swing high near R1 (1.1620) or higher.
Don't forget that SNB President Thomas Jordan is scheduled to testify today, so his comments may also affect the price movement of the Swiss franc. Be careful out there!
