At 22 month highs and with weekly sentiment overstretched, this week’s signals for GBP/CHF are just cautiously bullish, allowing room to buy into any weakness. Monday’s trading did in fact see investors take profits and sell the cross, the just over ½ Big Fig losses ending a sequence of higher daily lows.
The pullback should be temporary, but with no sign yet that it is ending, the outlook for Tuesday is to sell on the open and at 1.5321, today’s high in Asia, with a stop loss at 1.5350, this week’s opening trade. Targets are to 1.5292, yesterday’s low, 1.5270 and 1.5231, Thursday’s base.