By: John Ursus
Timeframe: W1
Recommendation: Long Position
Entry Zone: 1.5200 – 1.5250
Take Profit Zone: 1.4975 – 1.5000
Stop Loss Zone: 1.5375 – 1.5400
The GBPCHF has rallied over the past 18 trading months. The correction took this currency pair from an intra-day low of 1.3965 to an intra-day high of 1.5433 from where it started to move lower. This currency pair has formed an imperfect double top formation which is a bearish chart pattern and forex traders should expect the GBPCHF to correct slightly further from here until the correction is stopped by double support levels.
Forex traders should consider multiple entry levels into this short recommendation as price action could be choppy over the next few trading weeks. The GBPCHF is expected to correct down to its 38.2 Fibonacci Retracement level. Any further rallies from current levels should be taken as a good opportunity to enter new short positions. Upside potential is currently rather limited while downside potential remains attractive.
