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

Technical outlook and chart setups:

1. The GBP/CHF prints fresh highs at 1.5400 levels and pulls back sharply as seen here. The pair has produced a bearish engulfing candlestick signal indicating that the next move may be lower. Short positions could be initiated between 1.5360/70 levels, risk remains at 1.5440.

2. Support is at 1.5225 levels, followed by 1.5150, 1.4950, 1.4780 and lower while resistance is at 1.5400 respectively.

3. The structure indicates that GBP/CHF could drop lower in a corrective manner. Only a break below 1.5225 would be bearish.

Trading recommendations:

Initiate short positions around 1.5350/70, stop at 1.5440, target is open.

Good luck!