GBPCHF: Beware of the Market Bears

GBPCHF Technical Analysis

Recent gains in GBP against a basket of currencies were due to MPC McCafferty and Weale that voted for a rate hike. Their actions however were anticipated by the market, which may result in a snap profit realization in today’s session. Our technical models are turning bullish for CHF in the Forex market, which we would be more than happy to capitalize on in GBPCHF.

GBPCHF 4hr Chart

Please click on the chart to enlarge:

GBPCHF 4hr Chart 20/08/14

GBPCHF Technical Analysis 20/08/14

Strong resistance is noted at 1.5175, which we would expect to remain firm despite heroic attempts to drive the price higher. The top Head-And-Shoulders (H&S) on the daily chart as yet to fulfil its 100% objection of the reversal pattern, which means recent gains should be capitalized on for executing short trades. The protective stop loss order is relatively tight for the short trade, decent Risk Ratio (RR) and a fair entry at market price.

We do not expect to remain in the trade for an extensive period of time as we timed our entry on the 4hr chart. We would expect to be in a fair profit in today’s session. You’re welcome to review our ‘Trades Performance’ since we began publishing trade alerts in multiple asset classes such as Forex, Commodities, Stocks etc.

GBPCHF Trade Alert Details

Short @ market price
Take profit: 1.5158
Protective stop: 1.5212
Estimated duration: 6 days
Risk Ratio (RR): 1 : 2 (approx.)

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21/0814 UPDATE: GBPCHF is trading at 1.5138 at the time of this writing. Although wee are in a minor profit, wsee no reason to take any action at this stage.

21/08/14 UPDATE II: GBPCHF is trading at 1.5126 at the time of this writing. This is a comfortable level to liquidate 20% of the short trade at market price.

22/08/14 UPDATE: GBPCHF is trading at 1.5119 at the time of this writing. We fear corrective gains on an intraday level. We close 25% of the short trade at market price and shift the protective stop to the entry.

04/09/14 UPDATE: With a slight delay, GBPCHF was stopped at our entry after realizing partials with a fair profit.