Forex Chart Of the Day: GBPCHF Reversal Opportunity

The strength meter this week showed the GBP was the weakest currency and the CHF was the strongest. However, both currencies are in reversal zones which could see a reversal opportunity form on GBPCHF. 

Watch the video to learn more…

GBPCHF Analysis

The strength meter this week highlighted a potential reversal opportunity. It identified the GBP as the weakest currency and the CHF as the strongest. However, on the strength meter, when this happens we can often see the currencies strength or weakness reverse. In this case, that would mean, the GBP would strengthen and the CHF would weaken. Fundamentally, the SNB hiked rates which strengthened the CHF seeing GBPCHF prices fall.

Technically, the price is at a key weekly level of support. The last time price was in this area we saw a significant rally away. This information combined with the strength meter analysis could see a reversal form here. 

Going down to the daily chart, we can see that the price has formed a double bottom pattern, and a new higher high has formed. Not only this, but the price has formed a strong bullish close showing buyers are stepping in at these lows. If the price was to test the previous days high, we could use this area as support for a reversal opportunity. The target could be the major lows at 1.2000 or the most recent highs. 

Did you see our Week Ahead Analysis? You can see it here.

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About The Author

Jonathan Kibbler

Jon Kibbler, our Senior Market Analyst, boasts over a decade of trading experience. He specializes in dissecting the intricacies of financial markets and sharing his expertise with precision. Jon’s insights have been featured at renowned events and platforms like Coindex, Forex Analytix, and Forex.com.

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