The GBP/CHF has recently found solid support at the 1.5000 price level. Technical indicators, and the pair’s general trend, now seem to suggest a steady upward movement is expected.
The Pound/Swiss has been trading within a general downtrend since July 2007, when the price was peaking just under the 2.5000 level. The rapid plummet in value starting approximately around mid-November of last year has formed what appears to be an intermediate consolidation trend.
The price looks to be narrowing towards a focal point, located in the vicinity of 1.5350.
The oscillators on the chart below suggest that there may still be some laxity in the price and traders may therefore still see some further dips in value as the 1.5000 level is tested once more. However, these same oscillators do support the upward notion occurring in the next several hours.
As you can see on the chart, the Stochastic (slow) and MACD are only hours away from completing a bullish cross, supporting the imminent bullishness of the pair.
The upward target for traders to aim for within such a consolidation range will be somewhere within reach of the downward sloping trend line, near 1.5400. After which, the pair should see another mild decline as the consolidation trend clamors towards its spear-tip near 1.5350.
GBP/CHF – Daily Chart
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Greg Holden is the Chief Market Analyst at ForexYard. Greg uses his detailed knowledge of fundamental and technical analysis to provide some of the leading market forecasts in the forex world today. A guest lecturer at forex symposiums and Chief Editor of ForexYard's analysis center, Greg brings highly detailed and easy-to-use market analyses to his clientele. He has been published on ForexYard's Trading Blog and affiliate websites. Greg holds degrees in Political Science and Economics from Missouri State University, as well as a Masters degree in Middle Eastern History.
