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6 Jun 2014
GBP/CHF is sleeping at it opening level
FXStreet (Moscow) - GBP/CHF is consolidating after Thursday’s violent moves ahead of Swiss inflation data.
In a predicament
Bearish engulfing pattern on GBPCHF weekly chart hinted that the cross had topped out at 1.5116, but this conclusion might turn to be too hasty as we still need a confirmation of the upcoming bearish dynamics. On Thursday the cross spiked to new high of 2014 at 1.5130 on the back of ECB and Back of England monetary policy decision. Now that the ECB switched to more aggressive stimulus, the SNB might be forced to follow the lead to prevent CHF from strengthening against EUR. This puts the Swiss currency in unfavorable position against the British currency, where the central bank is supposed to start tightening sooner rather than later. Anyway, the bulls need to settle above 1.5000 resistance on weekly basis to get a chance for further upside.
What price levels and patterns have to be considered?
Current price is 1.4985, with resistance ahead at 1.4990 (Daily Open), 1.4992 (Weekly Low), 1.4994 (Daily High), 1.4994 (Daily 20 SMA) and 1.5000 (Hourly 20 EMA).
Support below can be found at 1.4983 (Daily Low), 1.4964 (Yesterday's Low), 1.4950 (Weekly Classic S1), 1.4926 (Daily Classic S1) and 1.4898 (Weekly Classic S2).
Regarding candlestick formations, we can see Doji formation on the 1-hour .
In a predicament
Bearish engulfing pattern on GBPCHF weekly chart hinted that the cross had topped out at 1.5116, but this conclusion might turn to be too hasty as we still need a confirmation of the upcoming bearish dynamics. On Thursday the cross spiked to new high of 2014 at 1.5130 on the back of ECB and Back of England monetary policy decision. Now that the ECB switched to more aggressive stimulus, the SNB might be forced to follow the lead to prevent CHF from strengthening against EUR. This puts the Swiss currency in unfavorable position against the British currency, where the central bank is supposed to start tightening sooner rather than later. Anyway, the bulls need to settle above 1.5000 resistance on weekly basis to get a chance for further upside.
What price levels and patterns have to be considered?
Current price is 1.4985, with resistance ahead at 1.4990 (Daily Open), 1.4992 (Weekly Low), 1.4994 (Daily High), 1.4994 (Daily 20 SMA) and 1.5000 (Hourly 20 EMA).
Support below can be found at 1.4983 (Daily Low), 1.4964 (Yesterday's Low), 1.4950 (Weekly Classic S1), 1.4926 (Daily Classic S1) and 1.4898 (Weekly Classic S2).
Regarding candlestick formations, we can see Doji formation on the 1-hour .