Against a background of bearish signals for GBPCHF on the week, yesterday’s call was for sentiment to improve. Both have been confirmed, as initial gains of over ½ Big Fig on Wednesday have attracted sellers for sentiment to deteriorate by 1 ¾ Big Figs from the day’s 1.5412 top.
A sequence of higher weekly lows has been ended and prices are trading below their 100 day average rate which is negative for sentiment. With no sign that the deterioration is ending, but with intraday sentiment oversold, the outlook for Thursday is to sell just modestly on the open and then at 1.5285, yesterday’s afternoon high, with a stop loss at 1.5325.
Targets are to 1.5195, the 3 week low, 1.5126, the 17th Oct base and 1.5073, the 200 day average rate.