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The British pound struggle continued against the Swiss franc, as the latter one gained traction against some other currencies as well including the Euro. The GBPCHF pair broke an important support area recently and traded lower to test 1.4190. There is immense bearish pressure on the GBPCHF pair, which is likely to continue in the near term. Today, the forex market might be quiet due to the Easter holidays, but there is a major release lined up in the US today. So, we can witness a lot of swing moves in the US dollar pairs. Let us see how the market reacts in the low liquid session.
There was a major bullish trend line formed on the 4-hour chart of the GBPCHF pair, which was breached recently and the pair traded lower. The pair also managed to clear the 1.4200 support area and currently consolidating around the mentioned levels. There is a chance that the pair might spike to test the broken trend lone, which is likely to act as a resistance in the near term. Moreover, the 50% fib retracement level of the last leg from the 1.4452 high to 1.4191 low is also around the same area. One important bearish sign to note that the RSI is well below the 50 level and could encourage sellers moving ahead.
If the GBPCHF pair moves lower from the current levels, then the last low of 1.4190 might act as a short-term support.
Overall, one might consider selling rallies in the GBPCHF pair as long as the pair is below the broken trend line.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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