Tuesday’s decision of UK Prime Minister – Theresa May to announce the premature election led to a significant appreciation of the pound sterling against other currencies. As a result, the GBPCHF has overcome key resistance within the 1.2640 support area.
Price quickly reached another significant area within 1.2890. Just then, in the second half of December 2016, a strong downward movement began. If growth is to continue it is necessary to overcome this level, which would open the way to 1.3122.
However, before the above scenario could be realized there is potential for a correction of last gains. The key here is level 1.2640, where you can look for buy signals, consistent with the current momentum.
Check out XM broker and get $30 for opening account!
The bullish attitude to GBPCHF is valid until the trade is over the upward trend line and the support level at 1.2440.