Technical Sentiment: Bullish
Key Takeaways
- The Sterling Pound remained bullish in early Asian and European trading, as CBI Realized Sales reported solid growth, albeit at a slower pace than expected;
- Swiss Franc suffers alongside Euro, declining against all major counterparts;
- Buyers were met by a very strong around 2012’s High of 1.5480.
GBP/CHF outlook remains extremely bullish as traders appear keen to push the pair even higher, with targets extending as high as 1.5640, 1.5830 and 1.6000 in the coming weeks and months.
Technical Analysis
While the Sterling Pound remains on the losing side against the mighty dollar, when faced with the likes of Euro, CAD, AUD and CHF the story is completely the opposite. So far this week, GBP/CHF posted small gains each day, gaining ground toward 1.5480. Now that price has finally hit this attraction point, traders are faced with a major long-term decision.
During the 9/25 European session GBP/CHF rally hit a high point of 1.5507, followed by a temporary decline back below the resistance. With the U.S. session now underway, buyers are invigorated and price action is showing a strong tendency to remain above 1.5480. A Daily close over the resistance will seal the deal, expanding bullish potential up to 1.5640, followed by 1.5830 and 1.6000 in the long term.
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Stochastic has already entered overbought territory on 4H and Daily. That being said, while price action lacks bearish signals, a top is highly unlikely at this point. At best, we could see GBP/CHF retrace back to 1.5480 in the near future after price rejects off one of the main resistance levels.
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Prepared by Alex Z., Chief Currency Strategist at Capital Trust Markets
