The GBPCHF pair recently reversed higher from a support zone around 1.0900, a level that previously halted wave ii at the start of September and wave (ii) later in the month. The bounce also found support from the lower daily Bollinger Band and the 38.2% Fibonacci retracement of the June upward impulse.

This upward reversal from the support zone arrested the sharp downward correction initiated in October and is now forming a daily Japanese candlestick Hammer pattern.

With a clear daily uptrend in place, GBPCHF is anticipated to extend gains toward the next resistance at 1.1060, a level that previously capped wave (i) in mid-September.

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