GBPCHF has seen an ascending channel up until the start of September. A sell-off in the instrument saw prices fall through the lower regression to the 1.16 region which was last seen in March.
Currently, another attempt at fresh lows is evident as we now look to the momentum indicator for further clarifications.
Since the prices have broken away from the Ickimoku cloud, we could expect a revisit to 1.16.
An attempt for prices to move back up past the 38.2% of the 1.222/1.1597 Fibonacci leg was met with resistance.
However, an intraday look at the pair sees prices bouncing off the 61.8% of the 1.1596/1.1835 Fibonacci leg. This could be significant as we now see prices trading between the Tenkan and Kijun lines.
Should the Kijun line pull prices back towards the cloud, we could first see a move towards the 1.17 area.
The bullish divergence seen on the momentum indicator could suggest a first targeted move to 38.2%. Should price then move towards the 23.6%, they will also be in line with the Ichimoku cloud.
A further attempt at recent highs towards 1.1835 could then become apparent should bulls keep bias to the upside.