Technical Outlook:
The recent activity of the GBP/CHF is presented below on the Daily Charts. Resistance level remains the same (1.4790) and as price will decrease, a breakdown of the 1.42 level is expected to take place resulting in downside movement. Intermediary low/support is located at 1.4350 levels. For last two days there trending activity was quite weak; the recent highs at 1.4620 are likely to be tested. In case of failure a major seloff will be triggered.
Chart Setup and Trade Recommendations:
Structurally the bearish trend is likely to resume. We are expecting the prices to carve out a 'C' Right Shoulder at current levels. Yesterday the recent highs at 1.4620 levels were tested presenting a star dogi candle. If today a bearish candle appears , the combination would be an evening star, indicating the fact that bears are strong again. We expect a breakdown of 1.42 levels after the price accelerating down towards 1.3800 levels. Bottom Line: Lower.
Trade Issued on April 04, 2012:
Sell @ 1.4520-40, Stop @ 1.4750-90, Target1 @ 1.3940, Target2 @ 1.3800. Fresh shorts can be taken at current levels (1.4570),
Wishing You,
Health, Happiness and Successful Trading.
