FX.co ★ GBP/CHF Intraday Technical Analysis September 5, 2011

After visitng the historical low 1.1467 the pair has made a strong quick, strong swing up reaching 1.3531.

The pair successfully tested 50% Fibonacci level of the mentioned swing around 1.2500 last friday.

Bullish hammer was formed at this level.

It's important to notice that there's a previous consolidation area 1.2590-1.2400 marked on the chart which is considered an important support.

Having a look at the lower timeframe (4H), We find:

The pair showed bullish reaction at the mentioned support manifested in the bullish hammer and bullish engulfing candlestick.

This gives the signal to go long around 1.2600 with SL below 1.2400.

TP should be 1.2660,1.2749,1.2838 then 1.2970.