Market Pulse: GBPCHF

The daily chart above shows how trading for the pair has been constructed within the ends of a bullish “Falling Wedge” pattern; the pair is approaching its resistance at 1.6800 though by assessing momentum indicators we can see that negative signs have been detected, especially on Stochastic, which might add strength to the aforesaid resistance delaying the expected breach.

GBPCHF

We might witness volatility and fluctuation among the mentioned resistance for the Falling Wedge and the 100 Days MA at 1.6500 in an attempt to unload negative momentum and gain positivity to attack the resistance level.

If the pair managed to breach the resistance it will help the formation of another bullish pattern with the neckline at 1.6860 which will accelerate the upside move towards the expected targets around 1.7575 and might extend towards 1.7800.
Though we should take into consideration that breaching 1.6500 will delay the proposed bullishness and might extend the downside move towards 1.6000.

By: Yasir Mubarak
Main Technical Analyst
yasir.mubarak@ecpulse.com