Well, it was going to happen sooner or later, and it finally happened after almost 4 months...the descending channel on the GBP/CHF has broken. The breakout began last week when the British Pound surged upwards to 1.5574 after better than expected numbers showing that the UK economy is doing relatively well and Mr. Carney did a partial about face on his plans for QE. Now, we are seeing weakness in the Swiss Franc and the combination has resulted in 3 days of trading outside and above the channel bands. Granted, the pair needs to break yesterdays high at 1.4364 to confirm after a bearish daily hammer style candle printed, but all signs point to up at this point. Resistance is strong at 1.4425 where March made its highs and again at 1.4575 with support at 1.4280 and 1.4170. A break of yesterday’s low could put us back inside the channel however, which would confirm a classic Fake-Out Break-Out.
