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by Darius Anucauskas

GBP/CHF Grinding Higher Towards Key Resistance

After a strong reversal at the end of March, GBP/CHF made its way higher, tested the 1.3175 level and then sold off again. But the pair never managed to go back to the lows of March, near the 1.2920 hurdle. GBP/CHF started forming higher lows, trading above a short-term upside support line taken from the low of March 29th, and now it is back very close to its above-mentioned resistance area, at 1.3175, which if broken could be seen as a gateway to higher levels. But until then, we will remain somewhat neutral and continue observing the price action.

A strong push above the 1.3175 barrier might invite more bulls into the game and could push the rate a bit higher, to test the 1.3200 zone, which is near the high of March 27th.  In order to continue aiming north, we would need to see the 1.3200 hurdle getting violated and the pair moving above it. This way, GBP/CHF would confirm another higher high and could clear the path for itself towards the 1.3240 mark, which acted as an intraday swing high of March 20th and the low of March 19th.

Judging by our oscillators, the RSI and the MACD, both are showing signs that support the above-discussed idea. The RSI is above 50 and continues to point higher. The MACD is also pointing higher, by sitting above zero and the trigger line.

Alternatively, in order for the short-term bias to turn somewhat negative, we would need to see a break below the aforementioned upside support line and also below the 1.3078 support area, which marks the low of April 12th. This way, the pair would confirm a lower low and could easily travel to the 1.3025 obstacle, a break of which may drag the rate towards the 1.2990, marked by the low of April 5th.

GBPCHF 4hour


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