# GBP/CHF Potential Trend Line Bounce (June 20, 2014)

Source: https://www.tradersway.com/resources/market-info/gbp-chf-potential-trend-line-bounce-june-20-2014/
Language: en
Updated: 2014-06-20

GBP/CHF’s uptrend is still intact, as seen on the 4-hour forex chart with an ascending trend line connecting price lows. Stochastic still hasn’t reached the oversold zone, which suggests that a deeper pullback might happen before the rally resumes.



At the same time, the 100 and 200 simple moving averages are in line with the rising trend line, making it a strong potential support zone. A bounce off the 1.5100 major psychological level, which coincides with a shorter-term broken resistance area, could lead to a rally up to the previous highs at 1.5300.



![GBP/CHF Potential Trend Line Bounce (June 20, 2014)]



Going long at 1.5100 with a stop below 1.5000 and a target of 1.5300 could yield a 2:1 return on risk. Aiming for new highs could improve the reward potential but it would be prudent to adjust the stop to entry once price tests the previous highs.



*By Kate Curtis from Trader’s Way*