GBPCHF: Cross Back Below 100DMA

The Pound dropped back below the 100-day moving average on Wednesday, but bulls seem to be jumping back into the market as the GBPCHF cross was trading at 0.25 per cent stronger during the London session on Thursday, hovering near 1.2880.

The latest bounce seems to be over, as the RSI indicator has already fallen below the bullish trend line and the price confirmed this signal by dropping below the mentioned 100DMA. If the current decline continues, the next target might be at around 1.2740, where previous highs are seen. If this position is not held, the price could fall further to the bullish trend line near 1.2660.

On the other hand, the resistance is at 1.2900, where the 100-DMA stands. If broken, the price might attack the psychological level of 1.3000.

The Sterling remains influenced mainly because of Brexit developments, which tend to change daily and therefore, volatility might be elevated over the next few days.

Disclaimer:

Analysis and opinions provided herein are intended solely for informational and educational purposes and don't represent a recommendation or an investment advice by TeleTrade. Indiscriminate reliance on illustrative or informational materials may lead to losses.