CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

12660 remains pivotal for GBPCHF

Article By: ,  Financial Analyst
January 9, 2020 1:40 AM

With a bearish structure on the weekly chart and potential H&S top on the daily, we’re looking for an eventual breakdown.

We can see on the weekly chart that GBP/CHF remains in a long-term bearish trend. There have also been four failed attempts to break above the 200-week eMA, with the most recent attempt being the week of the UK elections in December. Given the following week was a bearish engulfing candle and its most bearish in 5 months, it’s possible the market has topped.

However, we’d need to see a clear break of the 1.2660 before assuming trend continuation, which leaves it vulnerable to a bounce beforehand.


Switching to the daily chart, GBP/CHF has found support above the June high along with the 100 and 200-day eMA’s. With the 100 above the 200 eMA and sloping higher, there’s potential for a bounce over the near-term. Therefor bulls may want to consider trading the range and entering close to the lows around 1.2700 and target the zone of resistance around 1.2855 / 93.

However, if momentum wanes near the highs and signals price action is trying to top out, then bears could look to fade into moves below the resistance zone. Due to the bearish structure of the weekly chart, an eventual break lower is favoured. So we’re on the lookout for a break below 1.2600 as this would clear the current range and the 100 and 200-day eMA’s.


  • Whilst prices remain between 1.2663 – 1.2890, range trading strategies are preferred (long at the lows, short at the highs)
  • A break below 1.2660 confirms a head and shoulders top (and also clears the 100 and 200-day eMA’s)
  • If successful, the H&S projects an approximate target around 1.2200.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024