The end to a sequence of higher weekly lows following October’s 3 ½ year high at 1.5537 turned last week’s signals for GBPCHF to bearish. These were confirmed with an overall loss of 1 ½ Big Figs. Although there is no sign that the pullback is ending, it is signalled as being corrective and temporary.
So, while this week’s outlook remains negative, the call is to just cautiously sell on the open and then at 1.5450, with a stop loss at 1.5537, this month’s top.
Targets are to 1.5309/17, the 3 week low, 1.5255, a 50% pullback to the Sep-Oct gains and 1.5165, the 17th Sep low trade.
