By: Mike Kulej
The British Pound has been showing signs of strength lately. It appreciated measurably against some currencies, like the Euro, and held ground in relation to the Dollar, while the USD has been gaining on most others.
In case of the GBP-CHF, the Pound has recovered from the all time low of 1.5090. So far, this rally had spanned about 1000 pips, stalling at the 100 SMA, before a pull back to 1.5415. On Friday, the price once again met resistance at the 100 SMA and closed at 1.5803. This action indicates a bullish bias, which will be confirmed with a daily close above 100 SMA.
Another resistance level waits at 1.6000. This is the last significant high before the all time low was established. That resistance must be breached, also on the daily chart, for the trend change to be official. If it happens, this move should be accompanied by a change in the ADX indicator. One would like to see it turn upward, which would validate the developing trend. The GBP-CHF is at a very important juncture, a possible long term trend reversal.
