FX.co ★ GBP/CHF,Expect an Upward Movement in the Pair , December 31, 2010 (Weekly Strategy)

British Pound - Swiss Franc

The GBP/CHF pair, poised in an unusual negative momentum, has closed the trading day yesterday at the meaningful support level of 1.4400. This creates a strong probability for the beginning of a technical correction for the aggressive wave of downwards movements, and perhaps even a trend reversal.

A correct timing of the upwards movements would be for the case of breaching the minor trend line that has been accompanying the pair since the beginning of the wave of downwards movements. The 1.4990 and 1.5180 resistance levels can form as key points for partial realizations, while the high resistance level at 1.5900 can form a final, full realization goal on the position.