GBP/CHF is still trending down without being able to produce
new higher high. Pair formed a strong resistance area between 1.4200 and 1.4300.
Last week, this resistance was tested once again and rejected forming a bearish
divergence on the RSI oscillator.

Fibonacci applied to the descending channel breakout point
shows that rate failed to test 23.6% after breaking below the 38.2% level. Consider
selling GBP/CHF at the current rate (1.4040) targeting the 23.6% support – S5
(1.3360). The stop loss should be just above the R1 (1.4285).

Support: 1.4000, 1.3820, 1.3680, 1.3535, 1.3360

Resistance: 1.4285

GBPCHF_INSTA.png

The material has been provided by InstaForex Company – www.instaforex.com

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