FX.co ★ Technical analysis of GBP/CHF for February 10, 2016

Technical outlook and chart setups:

The GBP/CHF pair dropped lower as discussed and expected yesterday, and it has reached a low of 1.4000. The pair is now trading around the level of 1.4080 looking for an opportunity to resume its counter-trend rally (3 waves). It might be too early to confirm that the counter trend has resumed, but bullish divergences in the daily chart (not shown here) indicates that the counter trend is just around the corner. Please note that the pair has potential to rally up to the level of 1.4950, which is Fibonacci 0.618 resistance of a drop from 1.5580 to 1.4000. Immediate support is seen at 1.3820/30, while resistance is seen at 1.4250.

Trading recommendations:

An aggressive set-up would remain in the long term with stop at 1.3800.

Good luck!