Loading...
by Charalambos Pissouros

GBP/CHF Breaks Above the Key Hurdle of 1.3205

GBP/CHF rallied during the European morning Tuesday, breaking above the key resistance (now turned into support) barrier of 1.3205, marked by the highs of March 27th and April 18th, as well as the inside swing low of March 18th. Then, the rate emerged above the 1.3240 level, defined by the low of March 19th, something that may have opened the path towards higher resistance areas. On the 4-hour chart, the price structure remains higher peaks and higher troughs above the upside support line drawn from the low of March 29th and thus, we would stay positive over the near term.

We believe that the break above 1.3240 may have opened the path towards the 1.3300 hurdle, which is slightly below the high of March 19th. Another break, above 1.3300, is possible to extend the advance towards the high of the previous day, at around 1.3330. That said, after the rate challenges the 1.3300 area, we may see a pullback before the next positive leg. The rally already appears overstretched, which suggests that the bulls may decide to lock some profits soon, before initiating fresh positions.

The RSI lies above 70 and points up, while the MACD, already positive, has crossed above its trigger line. It points north as well. Both indicators detect strong upside speed and corroborate our view for further advances, but the fact that the RSI lies within its above-70 territory adds to our concerns for a small retreat soon, before the bulls decide to shoot again.

In order to start examining the case of a short-term reversal, we would like to see a dip below 1.3155. Such a move could confirm the break below the aforementioned upside support line and may initially aim for the 1.3125 level, marked by the lows of April 16th and 17th. If that level fails to stop the slide, then a break lower may set the stage for the 1.3080 zone, near the lows of April 11th and 12th.

GBP/CHF 4-hour chart technical analysis

 Disclaimer:

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. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD 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 prohibits the duplication or publication without explicit approval.

76% 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.

Copyright 2019 JFD Group Ltd.

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT