Virtually all of Q2’s bullish targets for GBP/CHF have been met, as gains of 5 Big Figs since April’s low have taken sentiment to within 6 pips of January’s 18 month high at 1.5126. However, investors have taken profits and have sold the cross last week, sentiment deteriorating by just over 1 Big Fig from May’s 1.5120 top.
The pullback should be temporary, but signals continue to point lower, so with this in mind the outlook for this week is to sell on the open and at 1.5042, Friday’s high, with a stop loss at 1.5126, January’s peak. Targets are to 1.4946, the 16th May low, 1.4905/11, the 3 week low trades and 1.4812, the 100 day average rate
