The Bulls pushed the GBP/CHF as high as 1.4981 yesterday in the first few hours of the London Session before the pair reversed and fell 76.4% of the daily range, to close at 1.4917 and forming a pseudo hammer or pin bar candle on the Daily Chart. I say 'pseudo because the close was technically a little too high to classify as a true pin bar, which should close in the lower 33% of the daily range. This is a formality, but the indications could be the same, lower prices to come for the pair today. The pair is facing heavy resistance above from the 1.4950 S/R level and a descending trend-line further up at 1.5060 +/-a few pips. Having been in a down trend since making the 2012 high in July at 1.5480, the pair has also retraced almost 88% of the move up from the June low at 1.4720, and although it formed a double bottom at the support level of 1.4820, there appears to be more bearish strength left in this one. A break below 1.4820 will surely see prices retest the 1.4700 area with a technical vacuum down to 1.4400 beyond that, and not out of the question if this trend continues. However, the Swiss Bank is making efforts to devalue their currency to aid in economic growth which sparked yesterdays spike in prices...the GBP/CHF is likely to attempt another pass at the descending trend-line above, but overall this pair remains much more appealing to short traders.
Happy Trading!