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GBP/CHF to 1.2350 on the Back of an Ascending Triangle

FTSE 100
FTSE 100

The GBP/CHF cross forms a contracting triangle that should act as a continuation pattern. Because the price keeps pushing against a horizontal line, the likelihood is that this is an ascending triangle ready to break higher.

The Bank of England is due next week with one of the most exciting decisions for the start of the week. So far, the COVID-19 pandemic masked the effects of Brexit, and the success of the vaccination campaign ongoing in the United Kingdom created a bid on the GBP pairs.

Among the GBP pairs, the GBP/CHF used to be one of the most volatile pairs in the past, but recently that changed. Nevertheless, after it cleared the 1.20 level, the pair looks poised to continue the bullish trend, at least if we judge by the series of higher highs and higher lows as well as by the ascending triangle mentioned earlier.

GBP/CHF Technical Analysis

An ascending triangle has the price pushing against a horizontal resistance – exactly what the GBP/CHF cross does here. On a break higher, the measured move of the triangle points to 1.2350, and that is only the distance signaled by the continuation pattern. In reality, the market may continue as long as the series mentioned earlier remains in place.

Bulls may want to place a pending buy stop order at 1.2230 with a stop at 1.2150 and a target at 1.2350.

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GBP/CHF Price Forecast

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