The GBPCHF currency pair was moving through more than a month in consolidation, which took the form of an inside bar. Yesterday, however, there was a breakout from this range, after which it is possible that the trend can continue.
I wrote about the multiple inside bar on the quotations of pounds to franc on 23rd October, noting that:
For the further direction of the GBPCHF pair movement, the direction of the breakout from the inside bar may be important. If it is upwards, then after defeating 1,2891, the buyers will open their way to resistance at 1,3400.
Yesterday’s closing of both over 1,2850 and 1,2891 gives a chance to continue the previous upward movement after 30 consolidation sessions. According to the previous analysis, the key resistance on this pair can be found in the vicinity of 1.3400.
On the way to this resistance, buyers may come under pressure from bears a little faster, already at 1.3130. However, if the quotations return at the close of the trading session at 1.2850, the prospect of further increases will be in doubt.
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