GBPCHF’s Bearish Breakout Flips to Bullish Fervor

The GBPCHF currency pair has been on the radar for its noteworthy behavior since October 2022. For an extended period, it was confined within a pronounced sideways trend, hemmed in by a sturdy resistance (colored blue) and a robust support (colored green). A pivotal moment came in mid-October when a descent through the green support materialized, triggering a compelling sell signal, suggesting a bearish outlook.

The ensuing descent, albeit sharp—tallying over 240 pips—proved to be ephemeral. On October 23rd, the tide turned, marking the commencement of a bullish reversal. Initially dismissed as a mere correction, the movement has since been recognized as a genuine reversal. The subsequent ascent was marked by a yellow rectangle highlighting a false bearish breakout—a technical event often heralding strong moves in the opposite direction.

Currently, GBPCHF has re-established its position above the green support. Adding to the bullish conviction is the break through a descending red trendline. This confluence of technical events lays the groundwork for a positive outlook on the pair.

As long as the green support holds, the sentiment leans firmly towards the buyers, presenting a robust buy signal. Eyes are now on the blue horizontal resistance, which stands as the first significant target for this renewed bullish momentum.

Source: https://www.axiory.com/analytics/technical-analysis/gbpchf-s-bearish-breakout-flips-to-bullish-fervor