Facts:
- The price bounced off the upper limit of 1:1 structure
- Short term trend from mid-January remains downward
Recommendation:
Trade: Short position on GBPCHF at market price
Target: 1.0540, 1.0495
Stop: 1.0690
Opinion:
Looking at the GBPCHF chart at the H4 interval, one can see that the price bounced off the key resistance last Monday. The resistance at 1.0655 is marked with the upper limit of 1:1 structure. In addition the bearish candlestick pattern – bearish engulfing appeared on the chart According to the Overbalance strategy, as long as the price sits below the 1.0655 resistance, the further downward move looks to be the base case scenario. We recommend going short GBPCHF at market price with two targets: 1.0540 and 1.0495.We also recommend placing a stop loss order at 1.0690. Source: xStation5
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