Following Monday’s indecision, the break of the 100 day average rate turned yesterday’s signals for GBPCHF to bullish. These were confirmed with sentiment posting a 3rd higher daily high in a row and an overall gain of ¾ Big Fig on the day.
Although this is positive, the recovery is most likely corrective and a sequence of lower weekly highs remains intact. With this in mind, but in the absence of a sell signal, the outlook for Wednesday is to stay square on the open, but to sell the rally at 1.5350 with a stop loss at 1.5394, last week’s high, or to sell down through 1.5239, yesterday’s opening trade with a stop loss at 1.5275.
Targets below 1.5239 are to 1.5195, yesterday’s low and 1.5126, Friday’s base.