Technical Analysis of GBP/CHF for May 05, 2016
Technical outlook and chart setups:
The GBP/CHF is seen to be trading at 1.3900/10 levels, unchanged from yesterday. But please note that the pair has re-tested lows at 1.3815/20 levels and bounced back. This might be an indication of an intermediary bottom formation and a potential rally towards 1.4700/50 levels as discussed yesterday. Please also note that the pair may be setting up to produce a bullish morning star candlestick pattern today. It is recommended to remain long for now, with risk around 1.3800 levels. Bulls seem to be determined to stage a rally (countertrend) towards 1.4700 levels at least before giving in to bears again. Immediate support is seen at 1.3820 levels, while resistance is at 1.4300 levels respectively.
Remain long for now, stop at 1.3800, target is 1.4700.
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