GBP/CHF breaks resistance and rises toward 1.2700

GBP/CHF is rising on Tuesday for the second day in a row, as it continues to rally after breaking key short-term technical levels yesterday.

A strong pound across the board boosted the pair yesterday and today it continued to rise. Recently it peaked at 1.2695, the highest level in 13 days. Last week it traded at the lowest level in five years. Th area around 1.2450 capped the decline and from there the pair rebounded.   

Technical levels

The rally of the last two days brought the price toward the 20-day moving average that stands at 1.2685. A consolidation on top could add momentum to the pound opening the doors toward 1.2800.

Currently is trading at 1.2690/94, up 0.40% for the day. To the downside, immediate support levels might be located at 1.2655/60 (American session low), 1.2620 (daily low) and 1.2560 (Aug 16 & 17 high). On the opposite direction, resistance could be located at 1.2695/1.2700 (psychological / daily high), 1.2730 (Aug 2 & 9 low) and 1.2805/10 (downtrend line).