FX.co ★ GBP/CHF tests trendline around 1.4200; breakout possible if 1.4260 is breached (March 1, 2013)

Technical outlook and chart setups:

As seen in the 4H chart, the currency pair has broken out of the sloping resistance line and tested the 1.4200 level again. Immediate short-term movement should be towards 1.4150/00. A positive bounce from there would warrant further bullish scenario towards 1.4260 at least, which is immediate resistance, followed by 1.4350 and higher. Furthermore, the current price action is also stalled by the past support turned resistance zone. It is recommended to continue holding short positions for now.

Trade recommendations:

Hold on to short positions for now, stop at 1.4300, target at 1.3800. If prices reverse from 1.4100/50, flip trades.

Good Luck!