GBPCHF has been under a long consolidation range between 1.28286 and 1.25795 since last April - stuck in a game of tug of war but none of the two currencies is letting the other to provide us with a breakout. Great Britian Pound and Swiss Franc, as we know are one of the most strongest currencies on the planet with alot of gold in backup to sustain their growth on an ascending pace. Much of the hawkish momentum was generated by Swiss Franc, driving the pair down from its highs i.e 1.30740 towards our 61.8% fibb retracement level i.e 1.25503. From the weekly perspective the market has been stuck in a sideways extension in shape of bearish correction while prevailing above exponential moving average 50 and 200. In March GBPCHF entered into overbought conditions in weekly relative strength index followed by a sharp bearish maneuver, marking 1.30333 as a strong resistance zone.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

GBPCHF has created some strong supply and demand zone in daily timeframe between 1.28286 and 1.25795, also a minor breakout below 1.25795 has provided us with another major support at 1.2540. The pair took a bullish reversal from our exponential moving averages 200 in daily, forwarded by a breakout above our exponential moving average 50 as well i.e 1.27358. GBPCHF bullish reversal from our 50% fibb level is indicating - specifically from the current markets perspective, that the pair will be now heading towards 1.28273 which is our major weekly resistance with weak supply and demand zone. The four hourly chart has already been undergoing overbought conditions for the relative strength index is trading above 70 and the current market move will lead the RSI in daily to touch 70, indicating more chances of a bearish reversal to correct its overbought situation. 

GBPCHF

Aug 10 2021