Finally, there is a bit of recovery in GBP/CHF, which moved from its recent lows of around 1.3050 that were seen last week. However, the pair is still below the downwards moving trendline, drawn from the peak of the 27th of April, which is still a bearish sign for the pair. GBP/CHF has to make a clear break through the aforementioned trendline before we start examining the case of a trend reversal. For now, we could see a bit recovery to the upside, towards that trendline.
A break of the 1.3230 level could interest the bulls in driving the pair slightly higher towards the 1.3250 zone. Above that, GBP/CHF could make its way and finally test the previously mentioned downwards moving trendline. The area to watch there could be around the 1.3310 mark.
The RSI also supports this idea as it is currently sitting above 50 and pointing higher. The MACD also got above its 0 mark and its trigger line. All indicate towards some more upside correction for now, instead of a turn down and a trend continuation.
On the downside, a move below the 1.3150 level could open the way towards the last week’s lows at 1.3050. If that level is not able to withhold the rate from dropping, then we could see a slide lower towards the 1.2980 zone, a break of which could send the pair even lower to test the 1.2865 support area.
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