FX.co ★ Technical analysis of GBP/CHF for February 05, 2014

Technical outlook and chart setups:

1. The GBP/CHF rallied yesterday, though it is likely to be in a corrective manner now. These rallies should be used to initiate fresh short positions. 1.4940/50 remains key level for bears. It is recommended that you hold short positions and sell intraday rallies as well.

2. Immediate resistance is the 1.4940/50 level followed by 1.5120/30, while supports are at 1.4570/80 followed by 1.4360/70, 1.4200 and lower.

3. The structure reveals that a meaningful top is in place at 1.5120/30 now. Prices are expected to continue drifting lower from here on towards 1.4400 and 1.4000 respectively.

Trading recommendations:

Remain short from earlier, stop at 1.5130, target at 1.44 and 1.4.

Good luck!