GBP/CHF Breaks Resistance, Signals Promising Buy Opportunity

A promising technical setup is unfolding on the chart of British Pound to Swiss Franc, as the pair begins to climb after a prolonged sideways movement. Over the past few days, the price dynamics have shifted, creating a potential bullish opportunity.

The chart shows the price bouncing between a key horizontal resistance marked with yellow at the top and a horizontal support marked in blue at the bottom. A decisive bounce from the blue support occurred yesterday, laying the groundwork for an inverse head and shoulders pattern, a bullish formation signaling a potential reversal to the upside.

This pattern developed over the last three days, with the left shoulder forming two days ago, the head forming yesterday, and the right shoulder shaping up today. Importantly, the price has already broken the red neckline of the pattern, confirming the bullish setup. Additionally, the price has climbed above the orange horizontal resistance, further strengthening the case for an upswing.

As long as the price remains above the bottom of the right shoulder, the buy signal remains valid, with a promising target set on the yellow horizontal resistance. This setup offers significant upside potential, suggesting that buyers could take advantage of the positive momentum to push the price higher.

Traders should keep an eye on the support levels, as a failure to hold above the right shoulder’s bottom could invalidate the bullish scenario. However, the current breakout and price action signal a favorable path for further gains.

Source: https://www.axiory.com/analytics/technical-analysis/gbp-chf-breaks-resistance-signals-promising-buy-op