All of our topside targets for Q2 have been met, but GBP/CHF sentiment is overstretched at 21 month highs, so last week’s call was to buy modestly on the open and then on the dip at 1.5165. This was the correct strategy and very close to the base, sentiment recovering initial losses to rally by over 1 Big Fig from Thursday’s 1.5168 low trade.
Although prices closed little changed on the week, which highlights a degree of investor indecision, the absence of a sell signal keeps this week’s outlook cautiously positive and the call is to once again buy modestly on the open and then at1.5178, with a stop loss at 15097, the 12th June low trade.
Targets are to 1.5278, Friday’s high, 1.5374, the Aug 2012 top and then towards 1.5485, the 2012 peak posted in July of that year.
