Technical outlook and chart setups:
The GBP/CHF pair pushed higher towards 1.2840 levels before reversing lower again as depicted on the chart view here. Please also note that the pair has found resistance at fibonacci 0.618 level of the drop between 1.3000 and 1.2425 respectively. The wave structure remains unchanged and is indicating that the pair is looking to complete wave 3 within the 5 wave’s drop that resumed from 1.3200 level earlier. A print
below 1.2400 level would be required to confirm an intermediary bottom formation. Besides, note that the rally from 1.2450 through 1.2840 levels is 3 waves
which is corrective in nature. If this wave count comes true, the next move
should be lower from here. It is hence recommended to remain short from here,
with risk above 1.2900 levels. The pair
should remain in control of bears till prices stay below 1.2900 levels going
forward. Immediate resistance is seen at 1.2850 levels, while support is at
1.2450 levels respectively.
Remain short now; stop above
1.2900, target is below 1.2400 levels.
The material has been provided by InstaForex Company – www.instaforex.com