Pull back unfolding after higher high

• USD/CHF is correcting back after peaking as it extends its uptrend. 
• The pair will probably resume its bullish bias after the pull back has completed. 

USD/CHF is pulling back within its short-term uptrend after peaking at 0.8642 on Monday. The move is only likely to be a temporary correction, however, before the pair resumes its uptrend and extends its sequence of higher highs and higher lows. 

USD/CHF 4-hour Chart 

USD/CHF will probably reach the target generated after it broke out of the range, at 0.8680, the 100% Fibonacci (Fib) extrapolation of the height of the range higher. It has already met the conservative target at 0.8627, the 61.8% Fib level.

The Relative Strength Index (RSI) has exited the overbought region giving traders a signal to liquidate their long positions and sell short. 

A chart gap opened on Monday morning and there is a risk the market could pull back all the way to fill this gap. If so, it could correct down to 0.8574. It would require a break below the former range highs at 0.8541 to confirm a probable change of trend.