USDCHF pulled back on the two-week descending trend line around 0.9160 after the aggressive buying interest in the preceding sessions. The RSI rebounded on the 70 level, while the stochastic oscillator created a bearish crossover within its trigger and zero lines in the overbought region. Both are suggesting the continuation of the bearish sentiment.
If the pair weakens, the 23.6% Fibonacci retracement level of the down leg from 0.9467 to 0.9008 at 0.9116 could provide immediate support ahead of the 40- and 20-period simple moving averages (SMAs) at 0.9095 and 0.9075 respectively. Even lower, the 0.9008 could attract a greater attention as any leg lower could worsen market’s bearish outlook.
An extension to the upside and above the falling trend line could meet the area between the 38.2% Fibonacci of 0.9183 and the 0.9197 resistance. Further up, resistance could run towards the 50.0% Fibonacci of 0.9240.
To summarize, GBPUSD looks bearish in the short-term unless the price breaks above 0.9350 – 0.9360.
Origin: XM
