Visit our website – Ikofx
The Swiss franc suffered losses against many major currencies recently including the British pound. The GBPCHF pair traded higher and tested the 1.4350-60 resistance area. There was a major resistance which was breached by the British pound buyers and paved the way for more upsides in the near term. The pair is currently correcting lower, which can be considered as a buying opportunity. There is a major release lined in Switzerland, as the Producer and Import Prices is an indicator of consumer price inflation provided by the Federal Statistical Office will be released. The market is expecting a decline of 1.5% in January on the year-over-year change basis. Let us see how it affects the Swiss franc in the near term.
There was a critical bearish trend line formed on the hourly chart of the GBPCHF pair, which was breached by the British pound buyers recently. The pair traded towards the 1.4360 level where it found sellers. On the downside, initial support is around the 38.2% fib retracement level of the last leg from the 1.4000 low to 1.4358 high. Any further downside might take the pair towards the broken trend line which is sitting along the 50% fib retracement level. There are a couple of more things to note such as that the pair is well above the 100 hour MA and RSI is above the 50 level.
On the upside, initial resistance is around the last high of 1.4358. A break above the same might call for a move towards the 1.4400 level.
Overall, one might consider buying dips in the GBPCHF pair as long as it is trading above the 50% fib level.
————————————-
Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
Free Reports:
