GBP/CHF is currently forming a descending triangle, where it is slowly moving towards the apex. This means that the chance for a strong break through one of the sides is increasing. On one hand, the downwards moving trendline, taken from the peak of the 27th of April, still remains intact. This is still seen as a bearish sign. On the other hand, the 1.3060 zone continues to show signs of strength and is acting as very good area of support. For now, we will stay neutral and wait for a break through either of the sides.
If, eventually, a break of the aforementioned support line happens, then this could lead to further declines. The next potential area of support could be at 1.2985, marked near the low of 7th of March. Certainly, if the selling remains, then a further drop could test the 1.2945 zone, a break of which could send GBP/CHF all the way to 1.2865, which was the lowest point of March.
On the upside, a break through the previously mentioned downwards moving trendline and the 1.3180 could be a good sign for some recovery, perhaps towards the 1.3270 barrier, which acted as a strong resistance recently. That said, in order to get more bullish on this pair, we would need to see a strong break through that resistance. Such a move could initially aim for the next obstacle of 1.3320, which if broken, could set the stage for the 1.3435 zone.
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 Brokers, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Brokers 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 analyzes 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 analyzes and must therefore be viewed by the reader as marketing information. JFD Brokers prohibits the duplication or publication without explicit approval.
FX and CFDs are leveraged products. They are not suitable for every investor, as they carry high risk of losing your capital. You should be aware of all the risks associated with trading on margin. Please read the full Risk Disclosure.
Copyright 2018 JFD Brokers Ltd.