Weekly Trading Signal : GBPCHF

GBPCHF: BUY

 

 

There is an interesting scenario on the GBPCHF, and this is something that may herald the beginning of a new lease of northward bias. For the most part of this year so far, the price was in a major downtrend. Last week, the price reached a low of 1.39646, being unable to go lower than that demand zone. Since then the price has been trudging upwards. Towards the end of the last week, the price crossed the EMA 56 to the upside but failed to uphold that action in the near-term. Nevertheless, the price surged upwards again at the beginning of this trading week as it crossed the EMA 56 to the upside and closed above it (trying to trend further northwards). Almost at this same time, the RSI period 14 crossed the level 50 to the upside and has remained so since then. Price moves in waves, and market biases tend to come out where major demand and supply zones are violated. The initial medium-term target for this trade is the supply zone around 1.48491. Should the price drop below the demand level around 1.40491, this particular outlook would be invalid.

Chart: 4 hour

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