Technical analysis of GBP/CHF for October 23, 2014



Technical outlook and chart setups:
The GBP/CHF has managed to hit 1.5320/30 levels as expected and discussed yesterday. Please note that it is also the fibonacci 0.618 resistance of the decline from 1.5550 and 1.4975 earlier. It is recommended to initiate short positions now, risk remains above 1.5450 at least. Resistance is seen at 1.5450, followed by 1.5550 while support is seen at 1.5200, followed by 1.5100, 1.4975 and lower respectively. It looks like bears could resume the down move from current levels and eventually extend it towards 1.4975 and lower. The pair might have formed a meaningful top at 1.5550 levels and could remain lower for a while.

Trading recommendations:
Remain short from current levels, stop above 1.5450, target is open.

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