GbpChf testing intermediary support at 1.4180/90. A counter trend rally expected
Technical outlook and chart setups:
The single currency pair rallied past 1.4350 mark before reversing sharply yesterday. It might be too early to predict, but current price wave structure might be indicative of a double bottom formation and a possible reversal ahead. As seen here, the prices are expected to stage a counter trend rally any moment, towards the channel line resistance around 1.4700 now. Therefore, it is recommended to buy the dips presented. Only a clear breakdown of 1.4150 level would indicate further downside in store. Look higher in the short term.
Hold on to long positions taken yesterday, stop is at 1.4130/50, targets are at 1.4700 and 1.4800.
The material has been provided by Instaforex Company – http://www.instaforex.com/