FxWirePro: GBP/CHF break above 200-DMA raises scope for upside, good to stay long on dips

GBP/CHF chart on Trading View used for analysis

• GBP/CHF has shown a decisive break above 200-DMA raising scope for further upside.
   
• The pair has edged above 1.31 handle and eyes next immediate resistance at 50% Fib at 1.3157.
   
• Technical indicators support upside. Stochs are sharply higher and RSI is above 50 mark, bias higher.
   
• We see +ve DMI dominance with ADX rising in support and MACD is showing a bullish crossover on signal line.
   
• Price action has edged above major EMAs and is extending gains above daily cloud.
   
• Next major target lies at 61.8% Fib at 1.3322. Weakness likely on retrace below 200-DMA. Dip below 20-DMA invalidates bullish bias.

Support levels - 1.3096 (200-DMA), 1.3022 (5-DMA), 1.2962 (20-DMA)

Resistance levels - 1.3180 (Upper BB), 1.3322 (61.8% Fib)

Recommendation: Good to stay long on dips around 1.31, SL: 1.3020, TP: 1.3160/ 1.32/ 1.3265

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.