Longer-term signals for GBPCHF have been bullish for some time, but with 3 higher Quarterly highs and lows leaving sentiment overstretched near 1.5485, the 2012 high, as well as being close to 1.5585, a 62% recovery to the entire 2009-2011 sell-off, last week’s signals switched to bearish on the break of a daily bull trend.
These were confirmed with an overall loss of just over 1 ¼ Big Figs, a pullback which is also testing a weekly bull trend. Intraday sentiment is oversold, but daily signals continue to point lower, so with this in mind the outlook for this week is to sell on the open and at 1.5290, a recovery of half of Friday’s losses, with a stop loss at 1.5392, last week’s high. Targets are to 1.5214, the 2 week low, 1.5166, July’s base and 1.5139, June’s low trade.
