Technical Analysis of GBP/CHF for March 02, 2016
Technical outlook and chart setups:
The GBP/CHF pair is seen to be testing a convergence of Fibonacci 0.50% and trend-line resistance at 1.3965/1.4020 levels as depicted here. Furthermore, the pair is producing an engulfing bearish candlestick pattern right at the trend-line resistance, looking to drop lower. The pair is trading at 1.3923 levels for now, and bears are expected to regain control till prices remain below 1.4310/20 levels broadly. Hence it is recommended to remain short for now with risk above 1.4020 levels. Immediate resistance is seen at 1.4020 levels, while support is at 1.3755 levels (interim). Only a push above the trend-line resistance and a subsequent break of 1.4320 levels would turn the pair into bullish territory.
Trading recommendations:
Remain short for now, stop is at 1.4050, target is below 1.3700 levels.
Good luck!
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