Visit our website – Ikofx
The Swiss franc traded higher against most major currencies including the British pound. The GBPCHF pair dived more than 2000 pips and traded towards the 1.2600 support area. The move was eye-catching and caught many traders by surprise. At one point there was a chance of testing all-time low of 1.14. However, the good point is that the British pound was less affected against the US dollar compared with the Euro. There is no release lined up today in the UK and Switzerland, so there is a chance that the GBPCHF pair might trade based on the market sentiment.
There was a monster support trend line formed on the monthly chart of the GBPCHF pair, which was breached after the SNB announcement of removing the 1.20 floor. The GBPCHF pair traded below the 1.30 level and literally collapsed. The monthly RSI reached extreme levels, and then the pair managed to gain a few bids. It is now trading back above the 1.30 area and currently trading around the 23.6% fib retracement level of the last leg from the 1.5542 high to 1.2600 low. There is a chance of a spike towards the 38.2% fib retracement level, which can be considered as a major barrier for the British pound buyers. Let us see how the pair trades and whether it can recover ground or not.
On the downside, initial support is around the recent low of 1.26. A break below the same might call for a move towards the 1.20 handle where buyers might appear.
Overall, one might consider selling rallies in the GBPCHF pair as long as it is trading below the 1.4000 area.
————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
Free Reports:
