Hello traders! GBP/CHF has been range trading during the past month. Price formed strong support at 1.1772, but at the same time rejected the downtrend trendline at 1.1887. There was an attempt to break above the trendline, although only a spike above has been produced, hitting 1.1987 high.
All-in-all, it seems that the triangle pattern has been formed, and considering the trendline rejection and strong selling pressure today, the price could be aiming lower, potentially breaking below the support and hit the 1.1679 downside target.
The target is confirmed by two Fibonacci retracement levels, the first bein the 161.8% Fibs applied to the most recent upside correction, where the trendline was rejected. The second is the 78.6% Fibs, applied to the overall move up. Besides, the 1.1682 support also corresponds to the previously established supply/demand zone, making an important level to watch, when/if the price will continue moving down.
Right now, the price could be correcting to the upside, perhaps to test the downtrend trendline once again. This might provide a good risk/reward ratio for the sellers in the short term.
Bias: Strongly bearish while below 1.1937
Potential Resistance Zone: 1.1850 – 1.1860
Potential Targets: 1.1682
Have a profitable trading!