FX.co ★ Technical analysis of GBP/CHF for January 23, 2014

Technical outlook and chart setups:

1. The GBP/CHF rallied yesterday and in early trading session today it went through the level of 1.5120. The weekly chart setup depicted here is pointing towards possible extensions at 1.5140/50 and 1.5340/50 respectively. It is recommended to remain flat for now after being stopped out at 1.5030 yesterday.

2. Immediate resistance is at 1.5140/50, while supports are spread through 1.4920/30 followed by 1.4700 and lower.

3. The structure reveals that 1.5140/50 is a convergence of fibonacci resistance levels as seen here and that a reaction (bearish) is expected.

Trading recommendations:

Remain flat for now. Look to sell after a bearish signal confirmation at 1.5140/50.

Good luck!