GBPCHF trading at resistance level
The currency pair GBPCHF has been rising for two months now and reached a year old resistance level at 1.2620 (A). The British pound rose against most of its peers and the recent slump in Gold prices weakened the Swiss franc (CHF is tied to gold prices), which gave the currency an easy way to the upside. As the course hit resistance, the Relative Strength Index also reached an overbought territory and rose above the 85 mark. A pullback from this level might be halted at the 1.2280 – 1.2375 support zone (B), which is converging with the 50 moving average.
The next support level would be around the 1.2100 – 1.2190 area (C). Should the bulls send the course above the 1.2820 level, it could rise to the resistance level around 1.3150 – 1.3290 (D).