GBPCHF – Looks to be forming a bullish reverse Head and Shoulders
|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 (107 months of mixed trading). Ichimoku Cloud resistance is seen at 1.4070. Marabuzo resistance May price action is located at 1.3365.
Weekly: For the last 92 weeks we have held within a bullish channel formation. The trend line resistance is currently located at 1.4041. Bespoke resistance is seen at 1.3900. This level is in-between the 50 and 61.8% pullback levels of 1.3676 and 1.4121. This is our prime long-term short entry level.
Daily: Levels close to the 261.8% extension level of 1.2958 (from 1.3856-1.3513) have found buyers. We have consolidated in the 1.3270 to 1.3023 range for 37 days. This limited movement looks to be forming a bullish reverse Head and Shoulders pattern. A break of 1.3280 and the measured move target is 1.3510.
Action:
We look to Buy a break of: 1.3280
Stop: 1.3150
Targets: 1.3510 and 1.3900
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