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There were some bullish signs noted in the GBPCHF pair, as the British pound climbed higher against the Swiss franc. It broke an important resistance area and looks poised for more gains in the near term. The SNB interest rate decision too failed to ignite a downside reaction in the pair, which points to solid buying interest. There is no economic release lined up in the UK and Switzerland today, which means the market might be mostly driven by the FX sentiment. We need to monitor the price action carefully and if there is any sign of bulls one might consider buying in that situation.

There was a bearish trend line formed on the hourly chart of the GBPCHF pair, which was broken recently to open the doors for more gains in the near term. Currently, the pair is trading around the 100 and 200 hourly moving averages confluence area, which is acting as a hurdle for the pair. If it manages to clear the same, then it might head higher. The next level of interest can be around the 76.4% fib retracement level of the last leg from the 1.5324 high to 1.5102 low. Currently, it is kind of struggling to break the 61.8% fib retracement level, which is around the mentioned confluence area. Let us see whether it can break higher moving ahead or not.

If the GBPCHF pair fails to move higher, then a break below the 100 MA might call for a move towards the 1.5180 support areas.

Overall, one might consider buying dips as long as the pair is trading above the 100 MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com