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The Swiss franc was seen trading lower Intraday as the SNB introduced negative deposits rates recently. The Swiss franc collapsed against the US dollar, Euro and the British pound. The GBPCHF was one of the best performers, as the pair traded towards the 1.5380 resistance area. The UK GFK consumer confidence was released during the Asian session, which registered a decline to -4. This release halted the upside in the GBPCHF pair. There is a possibility that the pair might correct lower in the near term. However, any correction could be considered as a buying opportunity in the short term.
There is a bullish trend line formed on the hourly chart of the GBPCHF pair, which might act as a support on the downside moving ahead. The pair is currently struggling to clear the 1.5380 resistance area, which poses a risk for a correction in the short term. If the pair moves lower from the current levels, then initial support is seen around the 23.6% fib retracement level of the last leg from the 1.5092 low to 1.5368 level. However, the most important one is around the 38.2% fib retracement level which is sitting around the highlighted bullish trend line. There is one important bullish sign to note, which is the fact that the 100 and 200 hour moving averages are also below the trend line. So, there is a major support around 1.5260.
On the upside, the 1.5360-80 resistance might continue to act as a hurdle for the pair. A break above might take it towards 1.5400.
Overall, one might consider buying dips as long as the pair is trading above the highlighted trend line.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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