Great Britian Pound versus Swiss Franc after breaking below the major support turned resistance zone 1.2560 and 1.2520 on 28th Oct, the pair has adapted to the continuation of its bearish trend. This led the market below 61.8% fibo retracement level of ours towards 50% fibo near 1.2441. But the bears on GBPCHF didnt stop there and further dragged the cables towards 38.2% fibo retracement level near 1.2294. We can observe that Great Britian Pound versus Swiss Franc has been trading inside the dovish channel and the current bullish reversal is just another correction. Exponential moving averages 50 and 200 are prevailing above the current market price - restricting the pair from gaining any higher levels for now and this can become our sell zone. 

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

The market is near a high supply demand zone which lyes at 1.2590 - a better selling opportunity can be availed from there because a bullish setup cannot be confirmed unless we find a hawkish breakout above  the aforementioned. This would open doors towards further gains - leading the market at 1.2720, however, a long term hawkish confirmation requires a breakout above 1.2840. On the bearish side, a closing below the exponential moving averages 50 and 200 in the daily time frame is likely to undo all the gains by driving the market towards 50% fibo retracement level and 1.23300. Other technical indicators like MACD, Stochastic and Relative Strength Index are struggling to show same projections but unfortunately the variations can be witnessed depicting chances of a bearish reversal from the current market price. 

GBPCHF Reaching for the Breakout Zone

Nov 17 2021