The GBPCHF sell-off since this month’s 3 ½ year high at 1.5537 stalled last week at a 5 month low near 1.5000 the Fig, but more importantly near the 200 day average rate, a level which has supported sentiment for 1 year.
However, improving sentiment since then has seen the rally stall near 1.5329, a 62% correction to the losses posted since the top. Yesterday’s bearish signals were subsequently confirmed with initial losses of ¾ Big Fig. Similar to Wednesday though, dips continue to attract buyers, sentiment recovering to close little changed on the day, the 2nd unchanged daily close in a row.
Signals aren’t strong, but there remains a cautiously bearish bias and the outlook for Friday is to sell modestly on the open and then at 1.5317, yesterday’s high, with a stop loss at 1.5339. Targets are to 1.5241, yesterday’s low, 1.5195, this week’s base and 1.5126, last Friday’s low trade.