By: Mike Kulej
In recent weeks, the British pound had been enjoying a revival. It rallied against many currencies, including the Swiss Franc, where it rebounded from its all time low. That was a decent run up, reaching over 1.5400 - but it ended last week and the GBP-CHF sold off.
The price fell rapidly, dipping under the 1.4900 level, establishing a new important support. Coincidentally, that is where a previous resistance from December was, which now changed its polarity and became a new support.
Multiple Possibilities
Currently the GBP-CHF is just above that level and will likely test it again. If broken, that would open the way for more bearish pressure. Chances are that this pair would fall right back to the all time low, another 400 or so pips.
On the other hand, if the support holds, the uptrend should resume. In that case, the minor high of 1.5100 is the pivot point, deciding the bullish bias. For now, however, the 1.4900 support is the key and should be watched closely.