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Today we will consider one of the rather interesting currency pairs — the pound/franc. Once this pair was one of my favorites. In principle, it remains so even now, but it does not always work out to consider it regularly. Well, for the completeness of the technical picture, let's start debriefing on GBP/CHF with a weekly timeframe.
Weekly
As can be seen on the weekly chart, after the rise to the strong technical and historical level of 1.3070, there was a sharp collapse, after which the pound/franc pair moved into the consolidation stage. After that, the bulls' attempts to resume the rise on this trading instrument met strong resistance from sellers in the area of 1.2815, after which the downward dynamics resumed. I stretched the grid of the Fibonacci tool to the global rise of 1.1596-1.3070 so that you can once again make sure that the British pound sterling quite often makes deep corrections to its previous movement. Let me remind you that, classically, leaving below the 50th Fibo level of a particular movement no longer indicates a correction, but a change in trend. However, this is not for the pound. As you can see, at the moment, the quote is trying to return above 50.0 Fibo, although before that it fell to the level of 61.8 from the indicated upward movement. If the GBP/CHF bulls manage to return trading above the 50th Fibo level, the Tenkan red line of the Ichimoku indicator, as well as the horizontal resistance level of 1.2368, continued growth will be the best option for further developments. Otherwise, we will either trade in a sideways range or a downward scenario with goals of 1.2200 and 1.2150. The continuation of the bearish course of trading on GBP/CHF will confirm the true breakdown of support near 1.2220, where the minimum trading values of the current month were shown.
Daily
On this chart, we see that after passing up the red Tenkan line of the Ichimoku indicator, the pair continued to grow, but stopped near the blue Kijun line, from which it cannot detach itself in any way. By the long circled shadows of the candles, it becomes clear what the strong resistance of sellers is concentrated in the price zone of 1.2355-1.2368. Considering that now the 50-simple moving average has dropped into the designated area, it will be even more difficult for players to go up this area to increase the exchange rate. Nevertheless, the upward prospects cannot be discounted, and they will be confirmed by the breakdown of the 50-MA and the resistance level of 1.2368. If this happens, on the rollback to the broken moving average and the level, I recommend looking for buying opportunities, which will confirm the appearance of bullish candlestick patterns on this or smaller time intervals. If bearish candlestick patterns appear in the 1.2360-1.2370 zone, this will be a signal to open short positions on GBP/CHF. At the moment, I consider the continuation of the rise or its attempts to be the most expected. However, do not forget about the subtle New Year's market, where any surprises can occur.
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