Bullish Breakout in GBP/CHF: Higher Highs Signal Potential Uptrend

In today’s technical analysis, let’s dive into the recent developments on the British Pound to Swiss Franc pair. Yesterday, as anticipated, we witnessed the price escaping from the symmetric triangle pattern, marked with blue lines, which provided us with a bullish breakout and a strong signal to buy. The initial rise carried the price above the key horizontal resistance level from the 10th of October, marked with orange color, confirming the upward momentum.

However, the rally halted when the price reached another horizontal resistance level from the 7th of October, marked with a black line. This black resistance now stands as a significant barrier to further gains. The good news for buyers is that the previously broken orange resistance was tested and successfully defended as a support level, reinforcing the bullish sentiment. The price has bounced off this support and is once again testing the black resistance line.

A daily close above the black resistance would solidify the positive outlook, providing a confirmation of the ongoing bullish momentum and a proper signal to go long. With the price now starting to form higher highs and higher lows, we are seeing the early stages of what could become a well-established uptrend. Traders should monitor whether the black resistance will break, as this would confirm the continuation of the bullish trend.

Source: https://www.axiory.com/analytics/technical-analysis/bullish-breakout-in-gbp-chf-higher-highs-signal-po