During this Friday’s session, the GBPCHF cross fell to the lowest level since November 2016. This year, the cross has been traded mostly bearish, losing 4.48% (YTD).
The pivot reaction
The cross founded support at 1.19, that coincides with the first monthly pivot support level. From this reaction, we foresee two scenarios.
- The first scenario is a bounce from the current zone. This outlook has two potential targets; the first profit level is on the weekly pivot level at 1.20488. The second profit level is within the confluence between the monthly pivot, and the first weekly resistance at 1.2199. The invalidation level is below 1.19021.
- The second scenario is a bearish continuation. This scenario will activate if the GBPCHF closes below 1.19021. The potential targets are in the confluence area among the first weekly support and the lowest level since 2016 at 1.1783.
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Remember that the price is not forced to move as our outlook proposes. The chart released corresponds to an educational application of the Pivot Points theory. Comments issued don’t represent an investment recommendation. Leveraged products are complex financial instruments and are not recommended for a certain type of traders. Losses can exceed deposits.