FX.co ★ Technical analysis of GBP/CHF for February 04, 2014

Technical outlook and chart setups:

1. The GBP/CHF has finally reversed sharply after testing back side of the support turned resistance line as seen here. It is still recommended to remain short, with risk at 1.5120/30.

2. Immediate resistance is at 1.4930, followed by 1.5120/30, while supports are spread through 1.4550/60, 1.4370/80, 1.4200 and 1.4000 respectively.

3. The structure reveals that a lower top is in place at 1.4930 below 1.5120/30 resistance. Prices are now poised to follow through lower towards 1.4450 and 1.4000 in the weeks to come. Selling rallies should remain the general trading strategy from here on.

Trading recommendations:

Continue holding short positions, stop at 1.5130 (shall be revised soon), target 1.44 and 1.4.

Good luck!