Hello traders! GBP/CHF continues to consolidate on the higher timeframe. Price has been stuck between 1.2143 resistance and 1.1628 support since April this year. This is 7 months of consolidation which is likely to continue for some time as there were no breakouts either to the upside or a downside.
But looking at the most recent price action it can be seen that GBP/CHF has rejected the downtrend trendline as well as 50% Fibs at 1.1966. During the past 48 hours, there was yet another clean rejection, this time off the 61.8% Fibs at 1.1857. And considering that the pair is printing lower lows and lower highs since the end of September, the probability of further price decline becomes high.
As long as GBP/CHF remains below 1.1966, it is likely to re-test the key support at 1.1628, which is confirmed by 50% as well as 661.8% Fibs, applied to the corrective move up after price broke below the uptrend trendline back in September.
Bias: Strongly bearish while below 1.1966
Potential Resistance Zone: 1.1857 – 1.1900
Potential Targets: 1.1628
Have a profitable trading!