FX.co ★ Technical analysis of GBP/CHF for October 21, 2014

Technical outlook and chart setups:

The GBP/CHF pair has bounced off the 1.5000 levels as expected and reached initial resistance at 1.5200/50 as seen here. The pair is expected to pullback towards 1.5100 and further rally towards 1.5320/30 at least. Immediate support is seen at 1.4975, followed by 1.4750/60 and lower, while resistance is at 1.5320/30, followed by 1.5450, 1.5550 respectively. It is recommended to to book profits on long positions taken earlier, and again enter at 1.5100; risk remains at 1.4950. The structure indicates that a top might be in place at 1.5550 and that bears should remain in control till prices remain lower than 1.5500/50. The current rally could just be a counter trend.

Trading recommendations:

Book profits on long positions. Again enter buying around 1.5100 levels, stop is below 1.4950, target is 1.5320.

Good luck!