Technical analysis of GBP/CHF for August 12, 2014



Technical outlook and chart setups:
1. The GBP/CHF pair could still continue to drift lower until 1.5070 levels as depicted here. The pair may stage intermediary pullback rallies though. As discussed earlier, a potential head and shoulder top and reversal is under way (with right shoulder around 1.5350).
2.Support is seen at 1.5140, followed by 1.4960/70 and lower while resistance is seen at 1.5350, followed by 1.5430/50 respectively.
3. The structure indicates that GBP/CHF could continue drifting lower at least towards 1.5070 before a meaningful pullback can materialize.

Trading recommendations:
Remain short, move stop to break even, target is 1.5070.

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