GBP-CHF: More Gains Seen

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK ( fxtechstrategy.com) -- After closing higher this past week, the pound-Swiss franc currency pair (GBP-CHF) looks set to build on its recovery gains triggered from the 1.1465 level.

If the cross currency pair continues to rise, it will target 1.4296, the May 22 high. A breach of that level would set the stage for a push higher toward the May 20 high at 1.4363.

Further out, the next upside target would be 1.4548, the May 8 high.

The pound-Swiss franc's weekly RSI is bullish and pointing higher, suggesting further strength.

On the downside, support on pullbacks stands at the 1.3710 level, the Sept. 20 low, followed by 1.3533, where we would expect a reversal of roles as support to occur and turn the cross higher in the direction of its near-term uptrend. If this did not happen, however, the pair would see more weakness toward 1.3128 and then 1.2519.

Overall, with the pound-Swiss franc cross currency pair breaking and holding above its key resistance at 1.3533, the risk is for further upside in the coming week.

-- Written by Mohammed Isah.

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Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces The Professional Suite for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.