GbpChf stalls at 1.4310/20 resistance. Keep risks on long positions at breakeven
Technical outlook and chart setups:
As depicted on the 4H chart view, the following facts should be again noted.
1. The single currency pair has been pushing higher since 1.4030 bottom formations, as we had expected.
2. The latest downswing boundary, for the entire downtrend from 1.55 level is between 1.46 and just below 1.4 levels. The Fibonacci retracement level for the same has been depicted here.
3. Prices are stalling at the moment at 1.4310/20 levels. Looking at the wave structure from below 1.4 level, the rally looks to be in 3 waves now. Hence if prices reverse from these levels it would be recommended to quit long positions.
4. On the other hand, a Gartley convergence is seen at 1.4411 levels, which is also the Fibonacci 0.786 retracement of the downswing. Keeping this view in mind it is still recommended to hold long positions (partial profits can be booked).
Book partial profits on long positions, place stops at breakeven, and target is at 1.44.
The material has been provided by InstaForex Company – www.instaforex.com