FxWirePro: GBP/CHF bulls reject near 7DMA but likely to extend up to 1.4192, major trend seems intact

The pair has managed to find a support at 1.4002 levels after continuous streaks of bear swings from 31st May.

Bulls now seem to gain some traction but stiff resistance is seen at 1.4192 levels, especially after bouncing from 1.4001 levels. You compare the price behaviour in recent historical evidence.

Having said that, no need expect too much from such rallies as you can also observe even though the pair has bounced the current prices have remained well below DMA curves on daily charts.

For now, this is certainly not a confirmed buy call as 7DMA has just crossed below 21DMA which is a sell signal.

Instead, enough bearish environments have been substantiated by leading oscillators.

RSI converges to the dipping prices both on daily and monthly graphs.

While stochastic oscillator reaches oversold trajectory but there is no trace of %K line crossover.

On monthly plotting, the ongoing downtrend is extremely robust that signalled particularly by RSI and MACD.

We think the decisive breach above 1.4192 levels and then 21DMAs would mean a new bullish trend and to expose towards 1.4492 levels, otherwise, the retest of support at 1.3903 is also the most likely event.

Prices also evidence corresponding volumes along with the both downswings and upswings on the monthly basis.

In a very short run GBPCHF should be bullish bias ahead of Brexit event specific risk, else remain in a choppy range now but certainly not a long-term investment option for now.

But on speculative grounds, as there is intraday buying trend is on with positive technical indications, we see buying opportunities in one touch binary calls for targets of 30-35 pips.