GBPCHF has been moving in the upward trend since setting the bottom of the downward trend, which took place in October last year. As can be seen on the weekly chart below, the pair has recently tested twice the resistance of this channel.
Considering the above, one can look for signs of exhaustion of the upward movement indicating space for declines towards the channel support. For this purpose, it is worth using the daily chart, where the price action has been somewhat rough last month. However, the bulls still manage to keep above the diagonal support line and the horizontal area close to 1.3156.
During yesterday’s session, an attempt was made to push the quotes to higher levels. However, the day closed at a level lower than the opening, which opens the way to test of the above mentioned support confluence.
Closing the day / week under the area at 1.3156 would reveal another significant level of defence that the buyer could aim at, namely 1.2830. Further drops after breaking it would open the way to support of the channel.
