Shutterstock photo
Markets

GBP/CHF Bouncing Off 1.5000 Support Line

Shutterstock photo

Shutterstock photo

The GBP/CHF has recently found solid support at the 1.5000 price level. Technical indicators, and the pair's general trend, now seem to suggest a steady upward movement is expected.

The Pound/Swiss has been trading within a general downtrend since July 2007, when the price was peaking just under the 2.5000 level. The rapid plummet in value starting approximately around mid-November of last year has formed what appears to be an intermediate consolidation trend.

The price looks to be narrowing towards a focal point, located in the vicinity of 1.5350.

The oscillators on the chart below suggest that there may still be some laxity in the price and traders may therefore still see some further dips in value as the 1.5000 level is tested once more. However, these same oscillators do support the upward notion occurring in the next several hours.

As you can see on the chart, the Stochastic (slow) and MACD are only hours away from completing a bullish cross, supporting the imminent bullishness of the pair.

The upward target for traders to aim for within such a consolidation range will be somewhere within reach of the downward sloping trend line, near 1.5400. After which, the pair should see another mild decline as the consolidation trend clamors towards its spear-tip near 1.5350.

GBP/CHF - Daily Chart

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx