FX.co ★ Technical analysis of GBP/CHF for May 23, 2014

Technical outlook and chart setups:

1. The GBP/CHF pair is stalling ahead of key resistance at 1.5120/30 levels as seen here. The pair has produced a doji candlestick trade signal indicating a potential reversal from here. This retracement or pullback is expected to move lower towards 1.4700 levels at least. Recommendations are to remain short, risk is at 1.5120/30.

2. Support is seen at 1.4900, followed by 1.4780, 1.4630 and lower while resistance is seen at 1.5120/30 levels respectively.

3. The structure indicates that GBP/CHF pair has potentially changed the trend towards higher levels, but a retracement should be expected towards 1.4700 levels before bulls resume again.

Trading recommendations:

Remain short, stop at 1.5130, target is 1.4700

Good luck!