GBP/CHF Trades In Recovery Mode

  


traded lower on Thursday, after it hit resistance at 1.2666, but the slide was stopped at 1.2633. Overall, the pair remains above the upside support line drawn from the low of Aug. 23, and thus, we would consider the short-term outlook to be positive.

A decisive break above 1.2666 would confirm a forthcoming higher high and may initially target the 1.2685 level, marked by an intraday swing high formed on August 16th. If that level is broken as well, then we could see advances towards the 1.2714 barrier, which is the peak of July 28. Another break, above 1.2714, could extend the trend towards the inside swing low of Aug. 12.

Shifting attention to our short-term oscillators, we see that the RSI, already above 50, has turned up again, while the MACD runs above both its zero and trigger lines. Both indicators detect upside speed and support the notion for a trend continuation.

See also  September Monthly Outlook: FX Weightings, Global Taper Talk, Politics

In order to abandon the bullish case and start examining the case of a trend reversal, we would like to see a dip below 1.2590, an intraday swing low of September 1st. The rate would already be below the aforementioned upside line, and may initially pave the way towards the low of Aug. 31, at 1.2560. If the bears are not willing to stop there, then a break lower could see scope for extensions towards the 1.2528 zone, defined by the low of the day before.

Disclaimer: The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval. 73.90% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – https://www.jfdbrokers.com/en/legal/risk-disclosure .

See also  USD/CAD Stays In Uptrend Mode





Read more here