FX.co ★ GBP/CHF candlestick analysis for February 16, 2011

The GBP/CHF is rolling back after a strong advance to the resistance level 1.5695. Earlier on a 4-hour graph the GBP/CHF has formed candlestick combination Rising Three Methods, which indicates upside 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 1.4850. However, it stopped near 1.5250 after a break of the resistance level 1.5192. Further the bulls started to increase their influence.
The breakthrough of the resistance level 1.5250 proves this viewpoint.
As mentioned before, if the resistance level 1.5418 is broken, upside movement targeted at 1.5600 and further at 1.5733 should be expected.
Stop loss should be placed slightly below 1.5381 as its breakout will target the GBP/CHF to 1.5059.