Is the Top In For GBP/CHF?PrimeXBT is here again with another professional analysis breakdown, and today we are taking a look at GBPCHF.
Last week’s bearish engulfing candle suggests we may have seen a significant-top on the GBP/CHF . Which is interesting, as is suggests that we’re headed towards a hard Brexit.
During an atmosphere of intense trade tension, Brexit, Presidential impeachment and slowing global growth, investors can’t be blamed for wanting a lifeboat. The Swiss Franc is usually it. Even with some of the lowest interest rates in the world, the currency has strengthened consistently against all of the currencies in Europe during difficult times.
With the election now out of the way, Sterling should continue to find dip buyers in the short-term, although the medium to long-term outlook for the British Pound remains cloudy. Still, GBPCHF's success to hold above the trendline is worth noting.
In the near term, the Relative Strength Index on the GBPCHF chart is flashing signs of bullish divergence, and some growth is expected from the support zone or 0.5 Fibonacci level with the target of 0.236 level or its ex-support zone.
If the price breaks this subjective key resistance level, a continuation of the uptrend will be confirmed and we’ll have to search for new buying opportunities based on the same level.
Alternatively, in case it breaks below a key support level, the downtrend will be confirmed.
Key Support Level: 1.2677
Key Resistance Level: 1.2929
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