By: Dima Chernovolov
GBP/CHF recently broke the daily Triangle chart pattern which was recently identified by Autochartist. Autochartist rates the quality of this Triangle at the 7-bar level – which reflects the medium Initial Trend (4 bars), strong Uniformity (9 bars) and above-average Clarity (6 bars). GBP/CHF is expected to fall toward the forecast price 1.1639 – in line with the earlier breakout of the support area highlighted below.
As can be seen from the daily GBP/CHF chart below – the pair previously broke the support area located between the pivotal support level 1.2100 (monthly low from October) and the 78.6% Fibonacci retracement of the previous upward impulse from August. This price area is acting as the strong resistance zone after it was broken. The proximity of this resistance zone increases the likelihood GBP/CHF will continue to fall toward the forecast price 1.1639.