Key Resistance Holds: GBP/CHF at 1.1221 Barrier Again

By Tomasz Wisniewski|

Published: November 29 2024, 08:55 GMT+0

Key Resistance Holds: GBP/CHF at 1.1221 Barrier Again

As we wrap up November, British Pound to Swiss Franc (GBP/CHF) presents a compelling technical setup. The pair is currently testing a key horizontal resistance level at 1.1221, marked in orange. This level has been a significant barrier for price action, as evidenced by repeated rejections on November 18th, 20th, and 25th. The resistance remains strong, indicating its relevance and the respect it commands in the market.

The price action now suggests the formation of a triple top pattern, a bearish reversal signal. This is further emphasized by the presence of a black neckline, representing dynamic support. A daily close below this neckline would confirm the bearish breakout, providing a strong signal to sell. In this scenario, the target for the decline would naturally align with the next support level, marked at 1.1118 in orange, a level that proved its importance during October and November.

Conversely, should the price remain above the black neckline, the potential for further testing of the 1.1221 resistance remains. However, given the multiple failed attempts to breach this level, a bearish breakout seems more likely. Traders should monitor today’s close for confirmation of the next move.

Source: https://www.axiory.com/analytics/technical-analysis/key-resistance-holds-gbp-chf-at-1-1221-barrier-aga

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