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GBP/CHF Testing A Critical Pivot At 1.48
Written by article default Monday, 11 April 2011 15:15
GBP/CHF
Short to Medium term
- The GBP/CHF might have completed an ABC correction. The market was spooked before testing 1.52, and dipped to 1.48. This is a critical juncture in the development of this pair.
- The 4H RSI is broke to 40, a bullish momentum support. Below 40, the market is confirming lack of bullish momentum. Breaking below 30 would be a bearish momentum breakout and confirm the market’s intention of bearish continuation.
- A break below suggests the case that we completed an ABC correction, and a bearish continuation is taking place. If such is the case, a retest of the lows between 1.43-1.44 is in sight.
- Measured moves, or swing projections actually target 1.42, then 1.3750 as shown in the daily chart.
- The 1.3750 level is also between 150% and 161.8% extended retracement of the rally in March.
- While the bearish scenario is the more likely at the moment, if the market shows strength enough to stay above 1.48, and break above 1.5026, we should see a rally towards 1.55 to test the a declining channel resistance.
Will the GBP/USD head towards 1.69? We want to hear what you think.