The GBP/CHF, after bouncing from 1.4180 trading in a descending channel since July 22 when it reached the high for 2012 at 1.5479. Being the high for 2012, we have since been falling with pretty straight forward pull backs and have formed a descending channel as a result that has continued into 2013. The pair reached its lowest level since February 2012 last week, and actually traded about 10 pips lower, making 1.4182 the lowest level for the pair since October 2011. After rebounding from the support level at 1.4180, the pair turned bullish for the next 3 days and yesterday once again resumed its bearish tendencies. Now, traders have an excellent opportunity to add to sell positions, or open new ones as the pair reached the 38.2 Fibo and fell to close within a few pips of the Weekly Pivot at 1.4402. Support is sparse between here and 1.4180, with only the Weekly S1 at 1.4267 offering any real support. If the pair can break 1.4280, the potential for shorts to accelerate is huge. The Weekly chart shows us that the next area of serious support sits at 1.3950 before reaching the October 2011 lows at 1.1300 +/- a few pips. I am very bearish on this pair, but a break above 1.4536 will bring the triple bottom from December/January into sight at 1.4690, an area that will act as heavy resistance.
Happy Trading