GBPCHF – Breaks below 9-month rising wedge support, eyes lower
GBPCHF@ 1.4761 bearish – Breaks below 9-month rising wedge support; eyes lower
GBPCHF reversed sharply lower off 1.5572 (November 16, 2015 YTD high, near the 61.8% retracement of the 1.8114/1.1463 June 2009/August 2011 fall) to breach 9-month rising wedge support (as shown on the weekly chart). The weakening indicators suggest scope remains for further downside towards the 1.4535 higher low (October 12, 2015). Below would open the 1.3816 reaction low (May 4, 2015).
However, if the 200-week moving average (black line) currently at 1.4777 manages to hold the slide, that would prolong the consolidation within the wedge. Only an upside push through the 1.5572 key resistance area would confirm return of strength and bolster for 1.6006 (November 15, 2010 lower high).
Outlook:
Intraday: bearish
Daily: bearish
Weekly: bearish
GBPCHF reversed sharply lower off 1.5572 (November 16, 2015 YTD high, near the 61.8% retracement of the 1.8114/1.1463 June 2009/August 2011 fall) to breach 9-month rising wedge support (as shown on the weekly chart). The weakening indicators suggest scope remains for further downside towards the 1.4535 higher low (October 12, 2015). Below would open the 1.3816 reaction low (May 4, 2015).
However, if the 200-week moving average (black line) currently at 1.4777 manages to hold the slide, that would prolong the consolidation within the wedge. Only an upside push through the 1.5572 key resistance area would confirm return of strength and bolster for 1.6006 (November 15, 2010 lower high).
Outlook:
Intraday: bearish
Daily: bearish
Weekly: bearish
