FX.co ★ Technical analysis of GBP/CHF for February 18, 2014

Technical outlook and chart setups:

1. The GBP/CHF pair remains structurally unchanged for now. The pair has retraced to1.4950/60, which is also fibonacci 0.618 resistance as seen here. The rally has stalled and a possible down move should be on the way. It is recommended to remain short, risk remains at 1.5120.

2. Intermediary resistance is at 1.4950/60, followed by 1.5120/30, while supports are spread through 1.4550/60, followed by 1.4350/60 respectively.

3. The structure is indicative of a potential head and shoulder reversal formation as seen here. A potential right shoulder has been carved out at 1.4950/60 levels and the next large move could be lower towards 1.43 levels at least.

Trading recommendations:

Remain short, stop is at 1.5130, target is open.

Good luck!