Wednesday’s forecast to sell GBPCHF at 1.5080 was the early European high, sentiment deteriorating by over 1 Big Fig from the top. However, the outlook also highlighted that losses below the 200 day average were unlikely and this too was the case, the dip attracting buyers for sentiment to rally by 1 ¾ Big Figs from the day’s 1.4974 low.
Prices are back above their 100 day average and with signals pointing higher, but with intraday sentiment overstretched, the outlook for Thursday is to buy on the open and a dip to 1.5140, with a stop loss at 1.5090. Targets are to 1.5208/13, yesterday’s high, 1.5266, the 4th Sep top and 1.5288, this month’s high trade. 