Hello traders! The GBP/CHF currency pair has been moving within the descending channel for almost one month, during the period of June 11 – July 7. On the July 7 pair broke above the channel and the 50 Exponential Moving average.
This was a first bullish sign, although not the last one. We can also see that GBP/CHF formed a reversal Head and Shoulders pattern, which also confirms bullish sentiment. The neckline has been broken and this validates the H&S pattern.
Currently, pair might start a short term consolidation, but overall the wave to the upside can be expected as long as 4h closing price remains above the right shoulder. The bottom of the right shoulder was tested at 1.1729.
In order to complete the H&S pattern, the price might rise towards the 1.2019 resistance level, which is confirmed by 61.8% Fibonacci retracement. This is a potential 200 pip move, which might be completed as soon as this week.
Bias: Strongly bullish while above 1.1729
Potential Support Zone: 1.1755 – 1.1800
Potential Targets: 1.2019
Have a profitable trading!