Hello traders! GBP/CHF trend remains bullish as pair still producing higher highs and higher lows. Since pair has tested the bottom at 1.1630, price broke above the downtrend trendline and has been on a steady rise during the period of 6 weeks.
Currently, GBP/CHF has corrected down and entered previous area of resistance which is now acting as the support and potential demand zone. There, the price has rejected the 200 Exponential Moving Average and the uptrend trendline. Also, the price bounced off the 38.2% Fibs at 1.1880 and already started to rise.
We might be witnessing the very beginning of the next swing up as long as the current support area is respected. Price can be heading towards the 1.2135 resistance area which is confirmed by two Fibs, 23.6%, and 161.8% Fibs applied to the current pullback.
But the alternative scenario might be that price will re-test the 50% Fibonacci support level at 1.1832 before/if uptrend will resume. There was a spike produced below the 50% Fib support, reaching 1.1798 low. And only if there will be daily close below this level, the bullish outlook will be invalidated and GBP/CHF downtrend will have much greater chances in comparison to the uptrend.
Bias: Strongly bullish while above 1.1800
Potential Support Zone: 1.880, 1.1920
Potential Targets: 1.2135
Have a profitable trading!