Bullish signals for GBPCHF on the week and for Tuesday have been confirmed, investors buying the cross yesterday for a gain of just over ¾ Big Fig and to a fresh 3 ½ year high at 1.5531. Although there is no sell signal, buyers are likely to become increasingly cautious with the market trading towards 1.5585, a 62% recovery to the entire 2009-2011 sell-off.
Losses into last night’s close have formed a bearish Shooting Star and although there have been several of these recently; it has switched signals to temporarily negative. With this in mind the outlook for Wednesday is to sell on the open and at 1.5510, with a stop loss at 1.5531, yesterday’s 3 ½ year high. Targets are to 1.5437/47, yesterday’s low, 1.5416, this week’s base and 1.5385, the 24th Sep low trade.