The long-term range support for this pound pair appears to be in place once more for a bounce!
This time, how high can it rise?
You can see that GBP/CHF is trading between support at the 1.1100 significant psychological level and resistance at 1.1500 on the daily chart below.
After testing the range support, the pair appears to have created a short-term double bottom reversal pattern, indicating that a rally may come next.
In that event, GBP/CHF may decide to return to the very top of the range or at least the intermediate area of interest.
This also happens to be close to the moving averages' dynamic inflection points!
The 200 SMA is above the 100 SMA, indicating that the upside barriers are more likely to hold than to be broken and that the downside path of least resistance is to the downside. If so, we may soon witness a further decline towards the range support.
Additionally, Stochastic is approaching the overbought area to signify buyer tiredness, thus a move south would indicate a return of the negative momentum.
Just be sure to keep a watch out for the U.K. retail sales report, which is due later today and could provide additional context for whether or not the consumer sector is in crisis owing to more intense than anticipated price pressure.
Strong consumer expenditure figures may convince pound bulls that the overall economy can continue to grow despite the possibility of a future BOE rate hike.
If that occurs, do you believe GBP/CHF will reach the range resistance?
