In our long-term wave analysis released on June 10, we commented on the possibility of a new low on the GBPCHF cross. Also, in our previous post, we mentioned that the Swiss currency is reaching an exhaustion zone. In this post, we’ll update what’s next from this cross for the following days.
The big picture
In the GBPCHF daily chart, we observe as was forecasted on June 10, how the price is close to the second relevant support at 1.2352. During the first trading session of the week, the GBPCHF touched the 1.23610, the lowest level since January 2019.
The short-term vision
Short-term, the 2-hour chart shows the ending diagonal structure of the bearish sequence. However, we have to consider that the price, long-term, is developing a bullish formation. This argument, added to the exhaustion zone of the Swiss Currency Index, is making us consider long positions. This bias will gain support after the bearish ending diagonal breakout. Finally, pay attention to the RSI structure, which seems to show a bullish stance.
The short-term target is the 1.2739 zone. The invalidation level will be placed below the last swing of the bearish process.
Remember that the price is not forced to move as our outlook indicates. The charts delivered corresponds to the Elliott Wave Theory application.