- GBPCHF built on the overnight bounce from a short-term ascending trend-channel support.
- Bullish oscillators support prospects for a move towards the key 1.2000 psychological mark.
- A convincing breakthrough the channel resistance will be seen as a fresh trigger for bulls.
- Fresh bullish positions should be accompanied with appropriate stop-loss near 1.1800 mark.
Having shown some resilience below 200-hour SMA, GBPCHF gained some traction on Friday and built on the overnight rebound from week lows. The recent positive move over the past three weeks or so has been along an upward sloping channel. This, coupled with the fact that oscillators on the daily chart have recovered from the negative territory and gaining positive traction on hourly charts, favours bullish traders.
However, the pair's inability to find acceptance above the 1.1900 handle warrants some caution before positioning aggressively for any further near-term appreciating move. That said, the pair still seems poised to aim back towards challenging the trend-channel resistance, currently near the key 1.2000 psychological mark. A sustained move beyond will set the stage for a move towards reclaiming the 1.1200 handle.
On the flip side, immediate support is now pegged near the 1.1845 region, which is followed by 200-hour SMA, around the 1.1820-15 region and the lower boundary of the trend-channel support, around the 1.1790 region. A convincing breakthrough will negate any near-term bullish bias and pave the way for further weakness. Hence, fresh bullish positions should be accompanied by appropriate stop-loss near the mentioned support.