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12.05.201410:37 Forex Analysis & Reviews: Technical analysis of GBP/CHF for May 12, 2014

Long-term review

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Technical outlook and chart setups:

1. The GBP/CHF pair has raised through the 1.4950 levels today in the opening hours and pulled back sharply. The pair stopped us out at 1.4960. Still, recommendations are to look for a top and reversal from current levels. The pair is expected to retrace towards 1.4600/50 levels from current levels.

2. Support is at 1.4750/60 followed by 1.4630/50, 1.4550, 1.4450 and lower, while resistance is at 1.4975/80, followed by 1.5120 respectively.

3. The structure indicates that the pair has completed its rally that begun from 1.4450 levels earlier. It could potentially fall back in a corrective manner towards the 1.4600/50 levels before rallying further.

Trading recommendations:

Look to enter short positions again, risk is at 1.5120, target is open. More conservative approach would be to remain flat for now, and look to buy lower.

Good luck!

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