By Natalie R. – After a long and steep rise of the GBP, the CHF might be seeing some much needed correction versus the pound.
Looking at the daily chart for the pair one can see several indicators pointing to an impending downward correction
1. A breach of the upper Bollinger Band is evident on the chart as well as a beginning of a downward correction still above the band, indicating the trend is likely to continue.
2. A bearish cross is evident on the chart’s Slow Stochastic pointing to an overbought pair. The Pound has strengthened considerably over the past month and it might be time to take profits and re-evaluate the future direction of the pair.
3. The RSI for the pair is floating in the overbought territory, indicating an imminent downward move. It is possible to see this pair getting back to around 1.6400 or even 1.6350.
Forex Market Analysis provided by Forex Yard.
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