FX.co ★ Candlestick Analysis of GBP/CHF for August 24, 2011

The GBP/CHF pair is demonstrating a sideways motion having tested the Fibo correction level of 38.2. Earlier on a 4-hour chart GBP/CHF formed a candlestick Long Shadows, which is signaling an upturn, and was confirmed thereafter.
This candlestick shows that the currency pair was showing a lowering movement for a few months after a failure to break through the resistance rate at 1.5686. Though near 1.1467 it will retrace which means that the bears have not fixated. Further on the bulls have started to strengthen.
Breaking through the resistance level at 1.2350 and of the Fibo correction level 23.6 confirms the viewpoint. This triggered a rise with the target to the resistance level near 1.3028, where the Fibo correction level 38.2 is positioned. Their breaking through has targeted the pair to 1.3700. the stop orders are recommended to be placed slightly below the support level at 1.2210 as its puncture will cause a downfall to 1.1467.