GBPCHF is moving sideways in the very short-term, above the downward channel’s upper boundary as momentum failed to continue the down move, when the pair met the obstacle supports of 1.2378 and 1.2417. Temporarily breaking the lows in previous weeks, the price is currently hovering between the 1.2378 and 1.2417 awaiting the move to give the definitive direction.
Momentum indicators are showing that a bullish bias could be in play, as the MACD has crossed to the upside of the red trigger line, whereas the RSI has broken the downtrend line, before heading for the 50 level. The short-term 7-day simple moving average (SMA) has crossed above the 14-day SMA, also suggesting the bullish outlook.
Should price break above the 1.2417 resistance, and adopt the bullish bias, the first test would be at 1.2495 before the 23.6% Fibonacci retracement level of the downleg from 1.3399 to 1.2339 around 1.2588 comes into view.
However, a break below the 1.2378 support level, would see the six-month trough of 1.2339, before the bottom of 1.2292 attract attention.
To summarize, a neutral outlook still exists in the very short-term, awaiting the directional break. Although for a more cemented bullish approach, a definitive move above 1.2675 would need to be seen.
