Forex Traders Reviews: GBP/CHF Uptrend Continuation – June 20, 2014

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Forex Traders Reviews: GBP/CHF Uptrend Continuation - June 20, 2014

Forex Traders Reviews: GBP/CHF Uptrend Continuation - June 20, 2014Forex traders reviews confirm that GBP/CHF’s uptrend is still intact, as seen on the 4-hour forex chart with an ascending trend line connecting price lows. Stochastic still hasn’t reached the oversold zone, which suggests that a deeper pullback might happen before the rally resumes.

At the same time, the 100 and 200 simple moving averages are in line with the rising trend line, making it a strong potential support zone. A bounce off the 1.5100 major psychological level, which coincides with a shorter-term broken resistance area, could lead to a rally up to the previous highs at 1.5300.

Going long at 1.5100 with a stop below 1.5000 and a target of 1.5300 could yield a 2:1 return on risk. Aiming for new highs could improve the reward potential but it would be prudent to adjust the stop to entry once price tests the previous highs.

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GBP/CHF: Forex Traders Reviews

The latest set of forex traders reviews shows that the pound might be in for more upside, as BOE Governor Carney reiterated their plans to start tightening monetary policy before the end of the year. The minutes of the BOE policy meeting revealed that most officials were in support of this outlook, as they were surprised that markets haven’t been pricing in the likelihood of a BOE rate hike yet.

As for the Swiss franc, more weakness is expected since the SNB downgraded their inflation forecasts for the next couple of years. Although they kept monetary policy and their growth forecasts unchanged for the time being, it’s not unlikely that they would jawbone or intervene in the currency market to defend the franc peg and ensure that EUR/CHF trades above the 1.2000 floor.

With that, support levels for GBP/CHF are likely to hold, particularly the confluence of support levels around the trend line and 1.5100 major psychological level.

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com

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Samuel Rae is an active retail trader across a variety of assets, including currencies, stocks and commodities and the author of Diary of a Currency Trader (Harriman House). His personal strategy focuses primarily on classical technical charting patterns with a fundamentally supportive bias, combined with a strict, risk management-driven approach to entries and exits. He is an Economics graduate from Manchester University, UK.