GBPCHF has seen a choppy price action for the previous quarter, with a failed double top leading prices down to the 1.17 area in the back end of 2020.
Since the turn of the new year, the bias has been firmly on the upside as the currency pair now attempt a triple top.
However, the recent bearish divergence noted on the momentum indicator could see strong resistance at the specified line.
Should this trend exhaust, then another move back down to monthly lows could ensue, as we await a break above the 1.22 region.
A short-term outlook sees that exhaustion has come into play, with prices looking to break down through the 1.21 level.
The recent bearish divergence brought prices lower, touching the top border of the Ichimoku cloud in the process. Should cloud engulfment take place, then the 38.2% of the 1.1916/1.2197 Fibonacci leg will be the first target.
Should bears pull prices further, then the 50% of the Fibonacci leg could come into play, as in recent sessions.