GBP/CHF recovering from 1.46 and looking at 1.50

By FXStreet FXStreet (Córdoba) – The pound is rising for the third day in a row against the Swiss franc and it is rising above important technical levels, rebounding after a sharp decline that took place during December.

GBP/CHF bottomed?

Last month the pair fell from 1.5500 and bottomed at 1.4595 (Dec 22 low). The area around 1.4600 again capped the downside, like it happened during the third quarter. The area is a key and very strong support from where the pair is rebounding.

Today it has broken a short-term downtrend line and price rose slightly back above the 20-SMA, giving signals of a potential temporal bottom and opening the doors for more gains in the coming sessions.

Today the pair also rose above 1.4790 – 1.4800 (Dec 22, 23 & 31 highs) and peaked at 1.4834, hitting the highest level since December 21. GBP/CHF needs to hold above 1.4800 to confirm the break and also on top of the 20-day MA to keep the bullish bias intact.

If the pair reverses and price consolidates significantly below 1.4600, it would have broken an important support, leaving the way open to further losses.
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Source:: FX Street