By Greg Holden
The GBP/CHF, after experiencing a moderate upturn, appears to be leveling off as it meets its first significant resistance level at 1.5039.
The pair has breached beyond this resistance price but, as can be seen on the chart below, the price has begun to turn somewhat flat; indicating a test of this resistance is underway.
Fundamentals look favorable for the British pound, which suggests the pair will indeed breach this level.
However, the Swiss franc’s growing strength over the past several months has many speculators concerned that it will continue to move bullish absent a significant appeal from the Swiss National Bank (SNB) to address its currency’s unnatural growth.
Looking at the chart below also shows an immense amount of technical pressure mounting against the pair’s recent bullishness.
The Stochastic (slow) shows a high-peaking bearish cross, and the Williams Percent Range has almost touched the 0 mark, suggesting an imminent reversal to the latest movement.
GBP/CHF – Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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