FX.co ★ GBP/CHF candlestick analysis for February 2, 2011

On a 4-hour graph the GBP/CHF is rebounding after it could not break the resistance level 1.5192. As mentioned before, stop loss should be placed slightly above this level as its breakout will target the GBP/CHF to 1.5400.
Earlier on a 4-hour graph the GBP/CHF has formed candlestick combination Falling Three Methods, which indicates downside movement, confirmed further.
This candlestick combination shows that the currency pair had been demonstrating upside movement for several weeks after an unsuccessful attempt to break the support level 1.4400. However, it reversed near 1.5400. This implies that the bears became more active at this point and the bulls could not solidify here. The breakthrough of the support level 1.5100 and the Fibonacci correction level 38.2 proves this viewpoint.
As mentioned before, if the support level 1.4850 is broken, downside movement targeted at 1.4400 should be expected.