GBPCHF - AB=CD formation and bespoke resistance to limit buying
|Technical
Monthly: A bearish Elliott Wave pattern (5-waves) was compete at the 2011 low of 1.1462. Price action is holding within a triangle formation. Ichimoku Cloud resistance is seen at 1.4092.
Weekly: For the last 80 weeks we have held within a bullish channel formation. The trend line resistance is currently located at 1.3907. Bespoke resistance is seen at 1.3980. With the weekly chart posting a DeMark 7 (9 highlights a correction) there is no clear indication that the upward move has to come to an end.
Daily: Although the daily chart highlights a bearish Outside Day, often an indication that a top is in place, there is no clear indication that the rally has come to an end. A full AB=CD formation would take the cross to 1.3975 (close to bespoke resistance). Further rallies are likely to highlight bearish divergence in lower timeframes. Our medium-term bias is now to sell into rallies.
Action: We look to Sell at 1.3970
Stop: 1.4150
Targets: 1.2900 and 1.2546
Article produced by Pia First for Orbex Limited
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