Mon 25th Aug

I wrote an article recently about the GBP/CHF in  response to a question from a reader and this can be found through the following link.  In this article I noted how the GBP/CHF seemed to be consolidating in a ‘Bull Flag’ pattern under the key resistance level of 1.55. I’ve noticed this morning that this pair looks like it could be attempting a ‘Bull Flag’ breakout. Price broke above the bear trend line of this Flag pattern late last Friday and price has gapped higher on market open today. 

GBP/CHF 4hr: The GBP/CHF has broken up and out from the Flag pattern. Note that the key 1.55 resistance level is about 320 pips above current price.

GBP/CHF daily: a clear daily close above this bear trend line would suggest bullish continuation from the ‘Bull Flag’ breakout. A move back up to test the 1.55 level might be on here:

GBP/CHF: weekly: the weekly chart shows that the 1.55 level has been considerable resistance for the last few years:

GBP/CHF: the monthly chart shows that the 1.55 level has been a key reaction point since 2008:

GBP/CHF: daily Cloud: the daily Ichimoku chart shows how price bounced up and off the bottom of the Cloud and 38.2% fib level:

Summary: A daily close up and out from the ‘Flag’ pattern on the GBP/CHF could suggest bullish continuation. Any confirmed bullish breakout might suggest a 300+ pip move back up to test the 1.55 resistance level.