The FX Trader’s view – In 2009 the GBP/CHF cross rate began a recovery following a major low point at the end of the previous year. After a deep pullback some positive signs are re-emerging now.
- WEEKLY CHART:
The pullback from the 2009 1.8112 initial recovery high eventually found good support – exactly at the 76.4% retracement level.
The chart structure and certain signs on the Daily chart below suggest that the 1.8112 high can be challenged in due course, with a continuation through likely to find next resistance around the 38.2% recovery level. - DAILY CHART:
The bounce off 76.4% found initial resistance from the bear channel top, but has now seen initial violation of this.
Once through old Nov/Jan 1.7112 highs resistance the next focus would be on the 1.7570 76.4% recovery level of prior Jun-09/Mar downmove, where recovery could temporarily falter.
At this stage s/term dips should hold above the 1.6088 05-May low in order to avoid a collapse in momentum.
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