FX.co ★ Technical analysis of GBP/CHF for May 02, 2016

Technical outlook and chart setups:

The GBP/CHF pair dropped to 1.3917 levels today in early hours trade before pulling back sharply. The pair is trading above 1.4000 levels at the moment, looking to rally towards higher levels. Please note that the pair broke below its trend line support but has found support close to fibonacci 0.50 levels of the rally between 1.3400 through 1.4200 levels, as depicted here. It seems that the pair has terminated its wave 4 and resumed the rally towards 1.4290 levels. It is still recommended to remain long with risk at 1.3900 levels. Immediate support is seen at 1.3900 levels, while resistance is at 1.4290 levels respectively.

Trading recommendations:

Remain long now, stop at 1.3900, target 1.4300.

Good luck!