Technical outlook and chart setups:
1. The GBP/CHF pair is bouncing off from the back side of the resistance line, which is support now, around the 1.4620/30 levels. Please also note that 1.4600 is fibonacci 50% retracement of rally from 1.4450 to 1.4820/30 levels recently. Keeping the above into consideration, it is recommended to cover short positions. Aggressive trade setup is to go long (1.4680), risk remains at 1.4500.
2. Support is at 1.4450 (intermediary), followed by 1.4350, 1.4200 and lower, while resistance is at 1.4850, followed by 1.4950/60, and 1.5120/30 respectively.
3. The structure indicated that GBP/CHF pair could resume rally towards 1.4950/60 and higher from current price. Since the bounce is seen at support confluences of trend line and fibonacci, bulls might regain control.
Trading recommendations:
1. Exit short positions. Aggressive trade setup is to go long, stop at 1.4500, target is open.
2. Conservative approach is to remain flat for now and wait for further evidence.
Good luck!
