November 02, 2018
Yesterday the Pound broke through resistance at 1.28030 as indicated in yesterdays update and took out all its estimated price targets at 1.28280 and 1.28430 and continued to 1.28790 during the overnight session. The pair continued its run to the upside from 1.28790 to 1.30257 following the Brexit deal with the EU. The next eyes will be on the UK PMI and UK Inflation data along with UK interest rate, all these are scheduled as per economic calendar which will provide the new direction to the pair.
The GBP/CHF is trading at 1.3027 level which is above the major and minor EMA lines. We can see on the daily chart the pair remains within an established rounding bottom pattern, which is itself a strong bullish pattern. Well the way bulls are dominating the bears it seems like bulls are driving the car and travelling towards north side, however recently we have witnessed a correction, but that second opportunity to buy for those who have missed earlier.
By looking at the daily technial chart we can see that pair has given us a valid breakout of downtrend line and presently pair is trading and sustaining above the downtrend line from an intermediate point of view whereas a short term uptrend line has occurred on the daily chart which is a recent development.Traders and investors are advised to go for long in the pair with a strict stop loss of 1.2884 level. On contraray a reversal below the stop loss will change the outlook from bullish to bearish.
As we have mentioned in our previous report that bulls will approach 50% Fibonacci retracement level first and bulls did the same so we are hoping that our readers must have made profit from this move. Odds are in favor of bulls and intraday bias remains bullish on the pair as long as 1.2871 level remains intact.
A bullish crossover on MACD indicator along with a bullish divergence on MACD is supporting the bulls and RSI is also favoring the bulls from above 50 territory. The 1.2850 is immediate support level followed by 1.2750 level whereas 1.3209 level is immediate resistance level followed by 1.3350.