Technical Analysis: Ascending triangle formation
- Taking a look at the GBP/CHF pair, we can see that price is currently in a strong downwards momentum, closing near the 61.8% Fibonacci retracement level drawn from the high on 14/2 to the low on 19/3.
- With price currently in a long-term consolidation , we can see the formation of an ascending triangle as indicated by the black trendlines. A potential breakout is to be expected in the coming weeks, but as of now, there are still opportunities to trade the pair.
- If price was to respect the 61.8% Fibonacci support level, we can expect an upward swing to wards the 38.2% Fib resistance level (Red down arrow).
- If however, price was to close below the 61.8% Fib level, we can then expect price to swing downwards to the 78.6% Fib support level (green up arrow) before further consolidation.
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