14.12.201115:08 Forex Analysis & Reviews: GBP/USD Intraday Technical Analysis & Trade Recommendation December 14, 2011

Overview:

USD/CHF is expected to consolidate with bullish bias after hitting three-and-a-half month high at 0.8972 on Friday.It is supported by the positive USD sentiment and dovish Swiss National Bank's monetary policy stance. But USD/CHF gains are tempered by the franc demand on soft EUR/CHF cross and franc demand on buoyant CHF/JPY cross. Daily chart is positive-biased as MACD and stochastics are bullish, although the latter is at overbought area, five and 15-day moving averages are advancing.

Trading recommendation:

The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As far as the price is above its pivot point, a long position is recommended with the first target at 0.8985 and the second target at 0.9015. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.8890. A breach of this target will push the pair further downwards and one may expect the second target at 0.8870. The pivot point is at 0.8920.

Resistance levels:
0.8985
0.9015
0.9045

Support levels:
0.8890
0.8870
0.8850