Is there enough momentum in the GBP/CHF uptrend to break past the multi-month resistance zone on a daily basis?
After rebounding from the 1.0890 Pivot Point line, the pair appears to be headed for the 1.1100 psychological barrier. Before experiencing real selling pressure, GBP/CHF could rise a few more pip or two, assuming yesterday's extremely bullish candlestick was an exception.
Our focus is on the 1.1000–1.1100 zone because it is in close proximity to the 200 SMA in the daily time frame and lines up with the R1 Pivot Point level. More significantly, in 2023, the area was a very reliable support.
A significant catalyst in addition to a definite rejection at 1.1000 could attract enough selling to return GBP/CHF to the 1.0890 support level.
However, if there isn't a catalyst for a shift in market sentiment for either GBP or CHF, the pair might pick up steam and break through our highlighted resistance zone at 1.1100. Moving to the 1.1200 psychological level or the 1.1300 prior area of interest would be an option in this situation.
