Technical Outlook:
GBP/CHF is still locked in consolidation and is likely to break through. Strong resistance is seen at 1.4790 level while the intermediary high is located at 1.4620/30 levels. As it is shown in the charts below prices have tested the previous highs at 1.4620 levels on Friday providing an Evening Star; the bearish signal indicates Sell-deals.From the structural point of view we recommend to remain short with Stop Loss at 1.4790 levels. When prices are lower than 1.4790, the pair will be likely to break through 1.42 level. Please, consider the recommendations below:
Chart Setup and Trade Recommendations:
Since last week the conventional Head and Shoulder setup has been forming. At the moment price is seems to be carving out a right shoulder around 1.4550-1.4520 levels,corrsponding to Fibonacci resistance zone of Down AB depicrted on chart. Head and Shoulder setups need some time to materialize, but whether it is true or not, the breakouts are also very powerful and steep. We are expecting prices to breakdown to 1.3790 levels on the downsde. This bearish outlook is likely to take place if prices are below 1.4790. At the moment the level 1.4620 is being tested. Bottom line: Lower.
Trade Recommendations: Issued earlier on April 04.
Sell @ 1.4520/40, Stop @ 1.4790, Target1 @ 1.3940, Target2 @ 1.3790. The trade is expected to materialize this week.
