Bullish signals for GBP/CHF in each of the last 2 days have been confirmed, investors buying the cross for a gain of 1 ¾ Big Figs and to a new 23 month high on Wednesday at 1.5405. While the improvement has come from a weekly bull trend, buyers are likely to become increasingly cautious with prices trading to within 80 pips of the 2012 top at 1.5485.
There is divergence on daily momentum too, so with this in mind, the outlook for Thursday is to sell modestly on the open and to sell the rally at 1.5440 with a stop loss at 1.5485, the 2012 top, and to sell down through 1.5350, yesterday’s low with a stop loss at 1.5390.
Targets below 1.5350 are to 1.5309, a 50% pullback to this week’s gains and 1.5250.
