FX.co ★ Technical analysis of GBP/CHF for May 21, 2014

Technical outlook and chart setups:

1. The GBP/CHF pair has produced a bearish engulfing candle around 1.5150 levels as seen here, indicating that the correction may still continue lower towards 1.5080. Please also note that 1.5080 levels is past resistance turned support and fibonacci 0.618 support as shown here.

2. Support is at 1.4950, followed by 1.470, 1.4650, 1.4550 and lower, while resistance is seen at 1.5300 respectively.

3. The structure indicates that GBP/CHF pair could still continue falling towards 1.5080 levels before turning bullish.

Trading recommendations:

Buy on dips remains favorable.

Good luck!