GBP/CHF has been moving downwards since December 2015 without showing obvious signs of reversal to the upside. While moving down, the price found the support at the level of 1.4640 (R1), which has been eventually broken.
The Fibonacci applied to the first corrective wave up after the breakout shows that the downside target has been reached and rejected at S4 (1.4135) that is 361.8% Fibs. The most recent price action shows that the previous level of support now acts as strong resistance since the price has rejected it for few times already. At the same time, RSI oscillator is showing bearish divergence and this could be a signal that consolidation could take place sending the price back to one of the support levels.
Consider selling GBP/CHF at the current level (1.4560) targeting S2 (1.4416), S3 (1.4276), or S4 (1.4135). The stop loss order should be placed well above the R1 resistance.
Support: 1.4500, 1.4416, 1.4276, 1.4135
Resistance: 1.4645
